Solution for QID #18404: 1) Explanation of bond valuation techniques Discuss the impo | StudyHelpMe

1) Explanation of bond valuation techniques Discuss the importance for investors of understanding bond valuation techniques 2) Given an issued 5 year loan for 50 million notional at 6M LIBOR + 100 bps, and a quote for a 5 year interest rate swap (IRS) to receive 5.5% and pay 6M LIBOR + 50 bps, what is the effective fixed rate received by the loan issuer? Assume semi-annual payments at 180/360 daycount basis 3) A firm had after-tax income last year of $3.0 million. Its depreciation expenses were $0.6 million, and its total cash flow was $3.0 million. What happened to net working capital during the year? (Enter your answer in millions rounded to 1 decimal place.)