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by gauravs
January 23rd, 2011, 5:30 pm
Forum: Economics Forum
Topic: QE2 and Long term Interest Rates
Replies: 6
Views: 26113

QE2 and Long term Interest Rates

<t>Hi, I have recently started reading about QE2. The intent of the program was to boost the economy by reducing long term interest rates. But many articles say that the interest rates on 10 year treasury have risen after QE2. At the same time, its said that growth has picked up due to QE2. I wanted...
by gauravs
December 26th, 2010, 4:58 pm
Forum: Student Forum
Topic: Cross Currency Swaps
Replies: 4
Views: 23347

Cross Currency Swaps

<t>I would rephrase my question:The US company raised euro loans at 5%. To convert its euro payment into fixed rate USD payment, lets say it finds only the following currency swap:Company pays 3% in USD and receives 2% in eurosNow the company still needs to pay an additional 3% in euros on its euro ...
by gauravs
December 26th, 2010, 3:47 pm
Forum: Student Forum
Topic: Cross Currency Swaps
Replies: 4
Views: 23347

Cross Currency Swaps

<t>Hi, I have a question on cross currency swap. Consider a US company that has raised loan in euros. In order to hedge its euro payments risk the company enters into a swap where it pays fixed rate in USD and receives fixed rate in Euros. Consider the following:In the swap, company pays 3% in USD a...
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