Goodrich-Rabobank Interest Rate Swap Essay -- Economics Economy Essays

Goodrich-Rabobank Interest Rate Swap 1. How large should the discount (X) be to make this an attractive deal for Rabobank? 2. How large must the annual fee (F) be to make this an attractive deal for Morgan Guaranty? 3. How small must the combination of F and X be to make this an attractive deal for B.F. Goodrich? 4. Is this an attractive deal for the savings banks? 5. Is this a deal where everyone wins? If not, who loses? Introduction: Players: Morgan Bank, Rabobank, and B.F. Goodrich, Salomon Brothers, Thrift Institutions and Saving Banks Goodrich: In early 1983, Goodrich needed $50 million to fund its ongoing financial needs. However, Goodrich was reluctant to borrow (short term debt) from its committed bank lines because of the following reasons: 1. It would lose substantial about of its remaining short term capital availability under its bank lines. 2. It would compromise its future flexibility by borrowing in the short term. Instead, it wanted to borrow for an 8 year range (or longer) at a fixed rate. However, since the general level of interest rates were pretty high, and Goodrich?s credit ratings had dropped from BBB to BBB-. Goodrich believed that it would have to pay 13% interest for a 30 year corporate debenture. Salomon Brothers had advised Goodrich that they could borrow in the US public debt market with a floating rate debt issue tied to the LIBOR, and then swap payments with Euro market bank that had raised funds in the fixed-rate Eurobond market. Note: The reason that Salomon were confident that this could be done is described as follows: 1. There was a recent deregulation of deposit markets had allowed deposit institutions to offer n... ...% - (x1+11.2%) = 1.3%-x1. 7. From (2), and (5) Rabobank saves the following amount in semiannual interest payments: LIBOR ? 1/8% - (LIBOR ?x2) = x2 ? 1/8%. 8. For this deal to occur, Rabobank, Morgan, and Goodrich must profit hence the following also must be true: a. (x1-x2)>= F where 37.5> F> 8 (footnote #2 on page 362). b. 130 ? x1> 0 i.e. 130> x1 c. X2 ? 12.5> 0 i.e. x2> 12.5 Assuming that x2 = 20 basis, and x1 = 100 basis. We can conclude the following: Goodrich pays a fixed interest of 11.2% + 1% = 12.2% a savings of 20 basis points (after transaction costs). Rabobank saves a total of 2% - 1.8% = 20 basis points. And Morgan collects 2% - 1.25% = 75 basis points in fee, in addition to the $125,000 one time fee. Note: The total savings that this deal provides as a result of the swap is: 5 + 20 + 75 = 100 basis points.

Homelessness and Vagabond Essay

Vagabonds are normally despised by the society. What happens when they are treated like an ordinary respectable human being is the main theme of this story. Introduction: The vagabond who is often chased by people is welcomed by an old man. In spite of the good nature of the old man the vagabond robs him. He later returns the money due to the good deeds and kind nature of a young lady. Summary: The vagabond sold self made rattraps. He made the rattraps with wire which he got by begging in the stores or big farms. At times he used to beg and steal, he had a philosophy of his own the entire world was a sort of rattrap. People were lured by the various pleasures of life just as a rat is attracted by cheese or pork. One day he met an old man as he was seeking shelter for the night. He was given hot porridge, tobacco to smoke and they even played cards. The old man showed the vagabond his money pouch and the three ten kroner notes. He slept that at the old man’s house and the next day he left the house with the three notes. He wandered into the forest for fear being caught for his thievery. He lost his way and finally stumbled into Ramsjo Ironworks in search of warmth and shelter. The owner of the Ironworks mistakes him to be an old friend and took him home. The vagabond played along but later requested to go back to the warmth of the forge. The Ironmaster sent his daughter to bring him back. The gentle and kind nature of the young lady made him follow her. Once he cleaned and shaved, the Ironmaster realized that he was a stranger. He asked the vagabond to leave his house but his daughter wanted him to stay. He ate and slept the entire day. On Christmas Eve the Ironmaster and his daughter went to church. At the church they heard that a vagabond had stolen money from an old man who had worked as crofter at Ramsjo Ironworks. The young lady became very sad and the Ironmaster was sure that all his silver spoons would have disappeared. On their return the valet said that the vagabond had left and he did not take anything along with him. On the contrary he left a small gift for the young lady. The vagabond had returned the stolen money along with a rattrap as a gift to the young lady. He wrote a note thanking her for her kindness and asked her to return the money back to the old man. The money was like bait that drew him to it and he would have been like a rat who got caught in the trap called ‘love of money’. Conclusion: The author has very well brought the condition of the vagabond. It is important to treat them as human beings and maybe a little love and affection can work wonders in transforming them into honest and sociable people.

The Characteristics Of Jazz And Blues Langston Hughes s ...

The Characteristics of Jazz and Blues in Langston Hughes’s The Weary Blues While I was reading Langston Hughes’s poems, I have noticed his outstanding accomplishment in his blending creation of Negro musical characteristics and poetry. And The Weary Blues is his peaked piece of a combination of both jazz and blues. The poem reflected American African’s living situation during the Harlem Renaissance, it sufficiently revealed the cultural charm of Negros and Hughes’s fully affirms of his national dignity. In my paper, I will analyze the methods and techniques Hughes used to highlight the musical elements in this poem. Jazz and blues are both styles of music which were discovered by Negros. They are important to Hughes and his culture, and according to the sad and painful tunes in jazz and blues, Hughes wanted us to listen and understand his culture from this poem. The Weary Blues has a rather oral character style; the fundamental key is very slow and sentimental, but the poem is full of musicality, and makes readers felt if they are staying on the scene. I felt not only the special pleasing quality of Negro’s ballad, but also felt depressed from Negro’s circumstances during that time. So I have decided to focus on the analysis of the structural, style of language, along with the jazzy and blues’ characteristics in the image of theme. And apparently, I will use structuralism and a touch on linguistics as my criticisms to argue my statement. In the external form str ucture ofShow MoreRelated Analysis of Theme for English B by Langston Hughes Essay1793 Words   |  8 Pages Langston Hughes was an African American poet and author who joined other black artists to break literary barriers during the civil rights movement. The poem entitled Theme for English B was written thirty years or so after the birth of the Harlem Renaissance, but still embodies why the Renaissance had originated in the first place. I believe this poem reflected on Hughes life in general, but more importantly on the fight against the ignorance that created discrimination. James Mercer LangstonRead MoreThe Harlem Renaissance s Influence On People s Views On African American Lifestyles Through Poetry Essay2428 Words   |  10 PagesTravel back in time several centuries ago to the 1900’s and imagine how different life would be – oil lamps/candles, outhouses or one toilet shared between several people, movies known as â€Å"flickers† and lasting no longer than 10 minutes, no television, ice boxes as opposed to refrigerators, baseball being the main sport that people followed as opposed to football, and unless you were a White male, your lifestyle was not filled with many opportunities or rights. With slavery being abolished not tooRead MoreBrief Summary of the Harlem Renaissance.1863 Words   |  8 Pageshad begun a steady development just before the turn of the century. In the performing arts, black musical theater featured such accomplished artists as songwriter Bob Cole and composer J. Rosamond Johnson, brother of writer James W eldon Johnson. Jazz and blues music moved with black populations from the South and Midwest into the bars and cabarets of Harlem. In literature, the poetry of Paul Laurence Dunbar and the fiction of Charles W. Chesnutt in the late 1890s were among the earliest works of AfricanRead More Visions of The Primitive in Langston Hughes’s The Big Sea Essay examples6201 Words   |  25 PagesVisions of â€Å"The Primitive† in Langston Hughes’s The Big Sea Recounting his experiences as a member of a skeleton crew in â€Å"The Haunted Ship† section of his autobiography The Big Sea (1940), Langston Hughes writes This rusty tub was towed up the Hudson to Jonas Point a few days after I boarded her and put at anchor with eighty or more other dead ships of a similar nature, and there we stayed all winter. ...[T]here were no visitors and I almost never went ashore. Those long winter nights

The Importance Of The American Dream - 1321 Words

Former First Lady, Michelle Obama, eloquently summarized the American Dream at the Democratic National Convention in 2012. â€Å"Barack knows the American Dream because hes lived it...and he wants everyone in this country to have that same opportunity, no matter who we are, or where were from, or what we look like, or who we love. And he believes that when youve worked hard, and done well, and walked through that doorway of opportunity...you do not slam it shut behind you...you reach back, and you give other folks the same chances that helped you succeed.† The American Dream inspires dreams of hope, change, and a better future for all. The American Dream has come a long way transforming over decades, it once was hard to access because of†¦show more content†¦With major figures Americas shaping leading by example, it is no wonder citizens latched onto the idea. Characters such as Andrew Carnegie, Fredrick Douglas, Benjamin Franklin, and Abraham Lincoln all symbolize a self-made man. The idea of rags to riches was a hit and soon every dreamer in America had a little more hope at striking it rich. The next change would happen in the midst of the Civil Rights movement. Once again, people are fighting for freedom and more importantly equality. Around this same time period, home ownership is another pillar of the American Dream. It began with the United States government passed the National Housing Act of 1934. The housing act encouraged white Americans all over the country to buy houses, by making credit more available to lenders. It continued with the GI Bill after World War II. The last transformation of the American Dream is more recent. It resides on the coast figuratively and physically. In a physical form, it is fame and fortune. The rise of the super celebrity has inspired Americans to dream of fame and fortune. Figurately, the coast is a place where Americans can let their dreams reside, always pining for it. Cullen says, â€Å"We never re ach the Coast we think we see. Still we go on dreaming.† The American Dream throughout the nations history has been impactful, but not always in a positive way. There are manyShow MoreRelatedThe Importance Of The American Dream918 Words   |  4 Pagesthere are some individuals who want the American dream, such as non-Americans. Even though immigrants essentially founded the American dream as the thirteen colonies expanded, current bans preventing entry from certain countries and regulations attempting to deport others seem to rip that dream out of their grasp. Contrary to popular beliefs, the American dream is not the white picket fence vision we were taught in high school history. Instead, the American dream is the desire to live comfortably withinRead MoreThe Importance Of The American Dream1547 Words   |  7 PagesThe American Dream, an ideal first defined by James Truslow Adams in the 1931 novel Epic of America. Adams (1931) defined the dream as, The American Dream is that dream of a land in which life should be better and richer and fuller for everyone... (p. 214). The dream of our ancestors has not changed with the passage of time, but achieving the dream has become much more difficult for the average American. Reviewing data compiled the last few decades paints a bleak picture, wage disparities haveRead MoreThe Importance Of The American Dream918 Words   |  4 Pageswork through the American Dream, but for one American, Lilly Ledbetter, success has not always come that easily. While working for GoodYear, Ledbetter learned that she was earning less money than her male counterparts. In addition, she was being sexually harassed by her coworkers and punished with poor reviews when she did not comply with their suggestions. As a result, even though Ledbetter worked just as much, if not more, than her male co workers, she was not rewarded as the Dream promises. ThereRead MoreThe Importance Of The American Dream916 Words   |  4 Pages During the 21st century, there has been a realignment of both social classes and habits due to the events of the last 20 years that make the American dream of the second half of the 20th century impossible to attain. According to Dictionary.com, the American dream is the ideals of opportunity, freedoms, and equality for all Americans. The American dream can no longer be attained for many reasons, but one big reason would be that people of this generation’s interests are not the same of those ofRead MoreThe Importance Of The American Dream1363 Words   |  6 Pages its possible to achieve the American dream.† -Tommy Hilfiger. What is the American dream? How is it possible to achieve the American dream if there are large corporations ruining it for the companies trying to reach such dream? The American dream consists of the ideal that every US citizen should have an equal opportunity to achiev e success and prosperity through hard work, determination, and initiative. What about those who are starting a new business whose dream is to become a large organizationRead MoreThe Importance Of The American Dream1231 Words   |  5 Pageswanted to be successful and powerful. The American Dream or the idea that everyone in the U.S. has an equal opportunity to succeed has been around since 1931. The problem with the American dream today is that in reality people don’t have the same opportunities as they used to. The American Dream may actually just be a dream with no real evidence to prove it’s true. Rana Foroohar, author of â€Å"What Ever Happened to Upward Mobility,† discusses why the American Dream isn’t the same as it used to be and howRead MoreThe Importance Of The American Dream1057 Words   |  5 Pagesthis country today don’t believe that the American dream is alive. Fifty-nine percent of those polled in June agreed that â€Å"the Amer ican dream has become impossible for most people to achieve. More and more Americans believe there is â€Å"not much opportunity† to get ahead†(Alternet). Many adults of the middle and lower classes American population no longer the American dream is no longer attainable because most if not all of the key elements of the American dream are no longer attainable. With financialRead MoreThe Importance Of The American Dream1732 Words   |  7 PagesTo achieve the American Dream, one must work hard and have the dedication to be successful. There are myths relating to this dream leaving lower class members to wonder if the dream exists for them. People in lower class are told if they want to be successful they must put in hard work and true effort. Once they do, they see that they are remaining in the same position they started in. In â€Å"Class of America-2012,† Gregory Mantsios states the ideas of class in the US and explains them. One myth addressedRead MoreThe Im portance Of The American Dream773 Words   |  4 PagesThe American dream has changed drastically thru our history. Back in the 1950 and 1960 the American dream was to have the house with the white picket fence and the 2  ½ kids. Now the dream for a lot of people is to be able to pay their bills and maybe have enough money to go out for a nice little dinner that you did not have to cook yourself. The American dream is dead, it is because the concept has changed from the idea that everyone can improve their life through hard work to the idea that everyoneRead MoreThe Importance Of The American Dream1628 Words   |  7 PagesThe American Dream, an ideal first defined by James Truslow Adams in the 1931 novel Epic of America. Adams (1931) defined the dream as, The American Dream is that dream of a land in which life should be better and richer and fuller for everyone... (p. 214). The dream of our ancestors has not changed with the passage of time, but achieving the dream has become much more difficult for the average American. Reviewing data compiled the last few decades paints a bleak picture, wage disparities have

Power Of Emotional Freedom Technique And The Universal...

To leverage the power of Emotional Freedom Technique and the Universal Laws of Creation, it is essential to know and to understand the basic principles that govern our Universe. The Universal Laws govern all of life without exception; from the glaciers to earthquakes, from spinning tops and spinning planets to newborns and world leaders, from elephants and arachnids to amoebas, to orchids, oranges and microorganisms. Metaphysics is the term used to study that which is beyond the physical, beyond what we can touch, see, taste and feel. The Universal Laws are the non-physical principles that govern our Universe in an unfailing, impartial, consistent and dependable fashion. As we study the laws that govern our Universe, we see certain empirical Truths. It is through the study of these Universal Principles and Truths that we master our creative abilities. With study, we begin to comprehend the profound implications of each law; we become more and more conscious of the power of our intentionality and of our minds; more and more conscious of the unwavering influence of our thoughts, emotions and beliefs on our experience. As we begin to work with these Universal Truths (studying, applying, practicing, and redirecting), we learn how it is that we live either in harmony or disharmony with our dreams and goals. By choosing to become acutely aware of our harmonious or disharmonious actions and thoughts, we experience and observe first hand the Universal Laws playing out inShow MoreRelatedThe Four Paths of Yoga1673 Words   |  7 Pageswork together for a greater purpose. The four paths of yoga have practices that Can be related to other religious traditions such as devotion, prayer, giving, and physical Actions such as fasting that require discipline and commitment to a Higher Power. The Four Paths of Yoga Life is full of choices, journeys, change, growth, and pain. Action is required to move along any path in life. The four paths of Yoga provide one with different ways to gain wisdom, practice devotion, take action, andRead MoreThe Influence of Music on Self and Society - Values in Music in Eastern and Western Cultures8787 Words   |  36 Pagesit expresses than words written about those expressions could ever be. That music has the power to express, convey and illicit powerful emotions is without question, however the issue of musics moral and ethical power, and how that power affects individuals and societies, is one that receives too little attention in our post-modern world. Ancient cultures held strong beliefs in the moral and ethical power of music and as such it was imperative for artists within those cultures to exercise a certainRead More Brave New World Introduction Essays2157 Words   |  9 Pages who vivits a new Mexican Reservetion and brings a savage back to London. Th e savage is at first fascinated by the New World, but finally revolted, and his argument with Mustafa Mond, world controller, demonstrate the incompability of individual freedom and a scientifically trouble- free society. In Brave New World Revisted 1958, Huxley reconsiders his prophecies and fears that some of this might be coming true much sooner than he thought. In Brave New World, he turned to the apologue. It wasRead MoreBrave New World Introduction2236 Words   |  9 Pages who vivits a new Mexican Reservetion and brings a savage back to London. The savage is at first fascinated by the New World, but finally revolted, and his argument with Mustafa Mond, world controller, demonstrate the incompability of individual freedom and a scientifically trouble- free society. In Brave New World Revisted 1958, Huxley reconsiders his prophecies and fears that some of this might be coming true much sooner than he thought. In Brave New World, he turned to the apologue. ItRead MoreCritical Evaluation: â€Å"Marketing Does More Harm to Society Than Good†2264 Words   |  10 Pagespresent arguments for the relevance of marketing in society. 2. Introduction to Marketing Marketing has been a foundational study for many business schools since the 1950s and the practice has flourished internationally due to marketing’s universal concept of achieving value for the business firms and its customers. During the 1950s a management expert named Peter Drucker lead the development of the â€Å"marketing concept†, which asserted that firms must create value for customers and see the businessRead MoreIbsen11859 Words   |  48 Pagesprotagonists Nora, Hedvig, Ellida, and Hedda. The theme of captivity also serves as a performance guide for the portrayal of these characters. Ibsen’s female protagonists are in bondage to an object or person that manipulates the character’s mental and emotional senses. The character’s inner captivity reaches a climax where a decision must be made to abolish the chains of captivity or forever remain enslaved. Since the nineteenth century, the actor has greatly benefitted from Ibsen’s electri fying work thatRead MoreCompassion Fatigue9142 Words   |  37 Pageswatching patients and families go through grief, sorrow and loss. Nurses had to protect their emotions by creating a barrier. With each year of practice, it became easier to detach. Some of them, become a veteran of being strong and silent during emotional times in patient care. They developed a true shell of protection against feeling the deep heartache one gets from observing grief and suffering. They can sometimes be supportive, yet most of the time they step back and not get emotionallyRead MoreLet Majorship English4572 Words   |  19 PagesENGLISH – SECONDARY 1. Which of the following is NOT associated with Romanticism? a. Emphasis on the collective rather than on the individual b. Belief in the child’s superior insight c. Celebration of the nature d. Emphasis on the power of imagination 2. What feeling is expressed in this line â€Å"My heart leaps up when I behold a rainbow in the sky†? A. Surprise C. Fear B. Happiness D. Anger 3. What is Chekhov’s most recognizable achievement in his short storiesRead MoreAll About Peace Education13195 Words   |  53 Pagestoward the full development of the human personality and to the strengthening of respect for human rights and fundamental freedoms. It shall promote understanding, tolerance and friendship among all nations, racial or religious groups and shall further the activities of the United Nations for the maintenance of peace. Article 26, The Universal Declaration of Human Rights Peace education is an elusive concept. Although peace always has been and continues toRead MoreCRM 1301 Midterm uOttawa Carolyn Gordon Essay10218 Words   |  41 Pagesposition and privileges Challenge authorities = charged with heresy Divert attention Blames witches and the Church becomes indispensible Scapegoat Target powerless or threatening groups Rationale for Punishment Rooted in Christianity Biblical law – lex tallonis (eye for an eye, tooth for a tooth) Penance through physical pain Nothing scared about the body Restore order of the world Maintain balance Eliminate evil spirits through death Symbolism of fire Deterrence General (a sentence

Lowprotein Free Essays

Not all naturally occurring metals are used by the body for important biological processes. Lead and cadmium are examples of these metals that are not essential for life but may even cause toxicity and death if taken in large doses. A study conducted in Japan showed a correlation between protein intake with the increased vulnerability for intoxication of cadmium (Tavari 1986). We will write a custom essay sample on Lowprotein or any similar topic only for you Order Now Rats given a low protein diet were observed to have higher toxicity from these metals that were also detected in the urine and feces (Suzuki 1984).   A low protein diet in humans is usually advised to those with kidney and liver diseases and as a result, this negative effect of higher metal toxicity is important to understand. Metals act by binding to organic compounds subsequently altering their structure and possibly modifying their function. When the function in not carried out well, this can lead to cell death and inactivation of the production of important enzymes (â€Å"Metals as toxins†). For instance, a metal compound can compete with a biologically significant element such as oxygen to create an enzyme responsible for degrading glucose. If this metal successfully defeats oxygen, the enzyme may not be produced; thus, glucose will not be degraded and possibly accumulated. This is a simple example of what a metal can do to the body. In the case of normal protein intake, the body has enough proteins that can bind to harmful compounds such as metals. Similar to the action of a lock and key, a specific protein can complex with damaging bioelements and then excrete them outside the body to prevent possible internal damage. Metallothionein specifically works as a chelating agent and combines itself with cadmium, for example and is excreted out of the body while Selenium, a protein abundantly found in egg whites, suppresses the toxic effect of metals (â€Å"Metals as toxins†). A low protein intake thus, have a significant effect in resulting to high levels of cadmium and lead in the blood since most protein clearly function in sweeping out these harmful metals by binding with them and then carrying them out of the body. References â€Å"Metals as toxins.† Retrieved August 11, 2007, from http://www.portfolio.mvm.ed.ac.uk/studentwebs/session2/group29/introtox.htm Suzuki, K.T., Miyamoto, E., Tanaka, Y. Kawamura, R. and Yamamura, M. (1984). Effect of diet on urinary and fecal excretion of cadmium, copper and zinc from rats preaccumulated heavily with cadmium. Archives of Environmental Contamination and Toxicology, vol. 13 no.5. Retrieved August 11, 2007, from www.springerlink.com/index/J456157JVU87212T.pdf Tavari, P.C., Jain, V.K., Ashquin, M. and Tandon, S.K. (1986). Influence of protein deficiency on cadmium toxicity in rats. Archives of Environmental Contamination and Toxicology, vol.15 no.4. Retrieved August 11, 2007, from www.springerlink.com/index/G88L4P84417XT467.pdf       How to cite Lowprotein, Essay examples

Financial Planning free essay sample

To inform the audience about how small sacrifices today can result in huge dividends in retirement. Thesis: Today I will inform the audience of the power of saving small amounts of money for the future and how compound interest works in their favor when they start saving as soon as possible. Organizational Pattern: Topical Introduction A. Attention Getter Who wants to be a millionaire? You can be!!! Social Security will very likely NOT be available to people currently younger than 40 and if it does survive will not be a significant amount to live on. How we prepare NOW can determine whether we are world travelers or Walmart greeters. C. Credibility My father impressed upon me the need for financial planning. I began saving when I first started working at 17 and have benefitted greatly. D. Thesis Today I will show how anyone can have a rewarding future by making small and often unnoticed sacrifices currently. We will write a custom essay sample on Financial Planning or any similar topic specifically for you Do Not WasteYour Time HIRE WRITER Only 13.90 / page E. Preview Specifically, I will discuss retirement saving strategies including 401K matching programs from employees and IRA’s. Transition First I will discuss the expediency of saving at an early age. I. Body A. When to start saving for retirement? 1. The earlier the better. Due to the exponential nature of compound interest the longer the money remains the more significant the growth 2. It’s never too late to start saving for retirement. The problem is the longer you wait the more impact on your budget due to having to save a higher percentage of your current income. If you start saving early your impact is minimized greatly. Transition Next, I will discuss the various ways to save for retirement. 1. 401K plans offer you the chance to deduct monies from your paycheck either before taxes are deducted or afterward. Each option has tax 2. advantages but their impact is geared toward current tax savings or tax savings during retirement. The real opportunity in 401K is the employee match program where your employer invests the same amount into your account, usually up to a certain percentage. . Individual Retirement Accounts (IRAs) are another way to save for retirement. They can be used independently or in conjunction with a 401K plan. Funds are deposited after taxes have been withheld so there is no tax due upon withdrawal in retirement. IRA contributions can be withdrawn without penalty if you face a financial hardship such as losing your home or significant medical bills. Transition My final point is a strategy that can meet your goal while minimizing impact on your current lifestyle. 1. Many of you are working toward new careers and excited about that first REAL paycheck. 2. If you â€Å"forget† about the percentage of your check that is going into the 401K and structure your budget on the remaining amount you will find saving easy and rewarding. 3. Begin with 3% of your pay going into retirement savings. Each raise/promotion you get increase it by 1% until you have reached your employer’s maximum match rate. Then add the 1% into an IRA until you have reached the percentage that results in your desired retirement account. I have discussed when to start saving for retirement, various ways to save as well as methods for minimizing the impact on your current budget. B. I trust that now you are more informed about the rewards available in the future when you start saving now and have obtained information about ways to achieve your goals. References Ira online resource guide.