Below are some aggressive, offensive statements. Make them sound more sensitive such that the guest will not be offended 1. Your credit card is already expired. We cannot honor it anymore. You have to pay in cash 2. Our hotel is fully booked. You can try other hotels 3. Your reserved room was given to a waitlisted guest because you did no come on time 4. You are not allowed to sign at the coffee shop because you are registered on cash basis 5. We do not give away compendiums for a souvenir. We will charge it to you if you take it away from your room 6. Are you asking for a massage service? That is not available in our hotel 7. We do not accept checks for payment 8. Mr. Juan, you are in a ragged attire. There is a dress code in this hotel 9. I dont know the schedule of trips to Baguio. You can call the bus station 10. You are not supposed to iron in your room. Did you not read the house rules in your room?
Responding to Customer Concerns 1. Walk in guest requests a room but the hotel is fully book a. What to do? b. What to say? 2. You learned that a guest brought a joiner and you wish to charge him for additional bed. a. What to do? b. What to say? 3. Guest was brought to his room, however, his dog is not allowed to be in the establishment according to hotel rules a. What to do? b. What to say? 4. Guest shows irritation when the housekeeping supervisor disturbed her sleep early in the morning when room check was made a. What to do? b. What to say? 5. A guest lost his passport and he asks for your help a. What to do? b. What to say?
Answers
Offensive statements can be rephrased using tactful language to ensure guests are not offended and their concerns are addressed respectfully.
How can offensive statements be phrased in a more sensitive manner to avoid offending guests?1. Instead of stating the credit card is expired, you can say, "We kindly request payment in cash as we are unable to process your card at the moment."
2. Rather than bluntly saying the hotel is fully booked, you can offer alternative options by saying, "Unfortunately, our hotel is currently fully booked. We would be happy to assist you in finding accommodation at other nearby hotels."
3. Instead of blaming the guest for not arriving on time, you can explain, "Due to high demand, we regretfully had to assign your reserved room to another guest. We apologize for any inconvenience caused."
4. Instead of outright denying the guest's request to sign, you can explain the policy more tactfully by saying, "To ensure accurate billing, we kindly request all transactions to be settled in cash at the coffee shop."
5. Instead of refusing to give away compendiums, you can inform the guest, "As per our policy, souvenir compendiums are available for purchase. If you would like to take one with you, it will be added to your room charges."
6. Instead of directly stating the unavailability of massage service, you can say, "While we don't offer massage services on-site, we can provide recommendations for nearby establishments that provide this service."
7. Instead of a flat refusal to accept checks, you can say, "To ensure smooth transactions, we kindly request payment to be made using alternative methods such as credit card or cash."
8. Instead of commenting on the guest's attire, you can politely remind them of the dress code by saying, "We kindly request guests to adhere to our dress code policy to maintain a comfortable atmosphere within the hotel."
9. Instead of stating you don't know the schedule, you can suggest a solution by saying, "For the most accurate and up-to-date information on trips to Baguio, we recommend contacting the local bus station directly."
10. Instead of assuming the guest didn't read the rules, you can remind them gently by saying, "As a friendly reminder, our house rules kindly request guests not to iron in the rooms for safety reasons. We apologize for any inconvenience this may cause."
Responding to Customer Concerns:
1. a. Offer to assist the guest in finding alternative accommodations nearby. b. Say, "We sincerely apologize for the inconvenience. Our hotel is currently fully booked, but we would be more than happy to help you find suitable accommodation at other hotels in the area."
2. a. Inform the guest about the additional charge for the joiner and provide the necessary arrangements for the extra bed. b. Say, "We have a policy regarding additional guests, and there is an extra charge for the use of an additional bed. We will be happy to arrange that for you."
3. a. Politely inform the guest about the establishment's no-pet policy and discuss potential solutions. b. Say, "We apologize for any misunderstanding. As per our hotel rules, pets are not allowed on the premises. We can assist you in finding nearby pet-friendly options."
4. a. Apologize for the disturbance and offer a solution to rectify the situation. b. Say, "We sincerely apologize for any inconvenience caused. We strive to ensure our guests have a comfortable stay. We will address the issue with our housekeeping team to avoid any further disruptions."
5. a. Offer assistance and guidance to help the guest with the lost passport situation. b. Say, "We understand the importance of your passport, and we will do our best to assist you. We recommend contacting your embassy or consulate immediately for guidance on how to proceed. We will provide any necessary support during this process."
Learn more about Offensive statements
brainly.com/question/2285414
#SPJ11
Related Questions
What is the best resource for general stories, information, and advice about contemporary business issues
Answers
The best resource for accessing general stories, information, and advice about contemporary business issues will depend on the specific needs and interests of the individual.
There are a variety of resources available for accessing information, news, and advice about contemporary business issues. One of the best resources is business publications, which are dedicated to covering the latest news and trends in the business world. These publications often provide in-depth analysis, expert opinions, and real-world examples of successful business strategies.
Some popular examples of business publications include The Wall Street Journal, Forbes, Business Insider, Bloomberg Businessweek, and Harvard Business Review. These publications cover a wide range of topics, including finance, marketing, management, entrepreneurship, and technology.
In addition to business publications, there are also a variety of online resources available. Websites such as LinkedIn, Medium, and Quora can provide access to a wealth of information and insights from industry professionals and experts.
To learn more about resource
https://brainly.com/question/28605667
#SPJ4
Components Personal consumption expenditures (C) $9,224.5 Gross private domestic investment (I) $2,209.2 Government consumption expenditures and gross investment (G) $2,523 Exports (X) $1,467.6 Imports (M) $2,229.6 Net exports of goods and services (NX) $ Gross domestic product (GDP) $ This method of calculating GDP, which involves summing the , is called the approach.
Answers
Answer:
Net Exports = $-762GDP = $13,194.70Expenditure approach.Explanation:
The Gross Domestic Product (GDP) is the value of the final goods and services produced in a country in a given period (usually a year).
It can be calculated by the formula;
= C + I + G + (X - M)
= Consumption + Investment + Government Spending + Net Exports
Net Exports = Exports - Imports
= 1,467.60 - 2,229.60
= -$762
GDP = 9,224.5 + 2,209.2 + 2,523 - 762
= $13,194.70
This method of calculating GDP is called the EXPENDITURE METHOD because it calculates the amount spent on gods and services in the country because the logic is that the final goods and services produced in the country were spent on by economic agent.
Inflation can cause difficulty in many ways. Which group would have the greatest problem during periods of high inflation?
Answers
Answer:
Inflation can cause difficulty in many ways. Which group would have the greatest problem during periods of high inflation that last several years? Older, working couples saving for retirement. Older people living on fixed retirement income.
what is nbetter fender gibson or danelectro guitars. (in your opinion). I ALREADY HAVE MINE DANELECTRO ALL THE WAY.
Answers
Answer:
Danelectro Guitars
Explanation:
They are just cool.
Which of the following is not a life role category?
O Risk Taker
O Worker
O Family Member
O Learner
Answers
Risk Taker is not a life role category.
A life role is a set of expectations, behaviors and attitudes that a society assigns to a person based on their gender, age, social status, race or other factors. For example, in many cultures women are expected to be loving, nurturing and care-givers, while men are expected to be strong, provider-types.
Life roles help to define how we see ourselves and how we are seen by others. They can be a source of satisfaction and fulfilment, but they can also be a source of stress and frustration if they do not fit with our own personal aspirations and identity.
Hence, the correct option is "First".
To know more about life, click here.
https://brainly.com/question/474192
#SPJ1
What are three things you will need each month to balance your checking account?
Answers
Answer:
Explanation:
Balancing your account means adding up all of your debits and credits (deposits and withdrawals), then adding the result to your statement's starting balance. The result will be your current account balance. Still, balancing your checking account is a good practice.
9.3 From the following trial balance of G Still, draw up a trading and profit and loss account for the year ended 30 September 20X9, and a balance sheet as at that date. Stock 1 October 20X8 Carriage outwards Carriage inwards Returns inwards Returns outwards Purchases Sales Salaries and wages Warehouse rent Insurance Motor expenses Office expenses Lighting and heating expenses General expenses Premises Motor vehicles Fixtures and fittings Debtors Creditors Cash at bank Drawings Capital Stock at 30 September 20X9 was £44,780. Dr £ 41,600 2,100 3,700 1,540 188,430 61,400 3,700 1,356 1,910 412 894 245 92,000 13,400 1,900 42,560 5,106 22,000 484,253 Cr £ 3,410 380,400 31,600 68,843 484,253
Answers
The trading and profit and loss account shows a loss of £221,227 for the year ended 30 September 20X9. The balance sheet indicates that the company has net assets of £81,556, which is equal to the capital invested by the owner.
Trading and Profit and Loss Account for the year ended 30 September 20X9:
Revenue:
Sales: £61,400
Less: Cost of Goods Sold:
Opening Stock: £41,600
Purchases: £188,430
Carriage Inwards: £2,100
Less: Returns Outwards: £1,540
Carriage Outwards: £3,700
Closing Stock: £44,780
Cost of Goods Sold: (£41,600 + £188,430 + £2,100 - £1,540 - £3,700 - £44,780) = £182,110
Gross Profit: (Sales - Cost of Goods Sold) = (£61,400 - £182,110) = -£120,710 (Loss)
Operating Expenses:
Salaries and Wages: £3,700
Warehouse Rent: £1,356
Insurance: £1,910
Motor Expenses: £412
Office Expenses: £894
Lighting and Heating Expenses: £245
General Expenses: £92,000
Total Operating Expenses: (£3,700 + £1,356 + £1,910 + £412 + £894 + £245 + £92,000) = £100,517
Net Profit before Interest and Taxes: (Gross Profit - Total Operating Expenses) = (-£120,710 - £100,517) = -£221,227 (Loss)
Balance Sheet as at 30 September 20X9:
Assets:
Premises: £13,400
Motor Vehicles: £1,900
Fixtures and Fittings: £42,560
Debtors: £5,106
Cash at Bank: £22,000
Total Assets: (£13,400 + £1,900 + £42,560 + £5,106 + £22,000) = £84,966
Liabilities:
Creditors: £3,410
Net Assets: (Total Assets - Creditors) = (£84,966 - £3,410) = £81,556
Capital: £81,556
The trading and profit and loss account shows a loss of £221,227 for the year ended 30 September 20X9. The balance sheet indicates that the company has net assets of £81,556, which is equal to the capital invested by the owner.
For more such questions on trading
https://brainly.com/question/28003025
#SPJ11
What increases your total loan balance interest accrual or interest capitalization?
Answers
When it comes to the calculation of a loan balance, the factor that increases this amount is the interest capitalization.
Interest capitalization:
Is unpaid interest that has accumulated. Is added to the loan principal.As a result of this unpaid interest being added to the loan balance, the loan will increase in size and the interest will then be calculated using this new balance thereby increasing the interest payments as well.
In conclusion, the answer is interest capitalization.
Find out more on interest capitalization at https://brainly.com/question/16340851.
Consider the following simple linear regression model: y = Bo+B1X + u. Which of the following statements is correct? ay is called the explained variable. b. * is called the dependent variable. We are interested in studying how x varies with changes in y. OC d. All of the above.
Answers
The correct statement is "b. y is called the dependent variable."
The dependent variable is the one that is being explained or predicted by the independent variable (in this case, X). The independent variable is the one that is believed to have an effect on the dependent variable. Therefore, in the given model, y is the dependent variable and X is the independent variable.
The term "explained variable" is another way of referring to the dependent variable. The statement "We are interested in studying how x varies with changes in y" is incorrect as it suggests the opposite relationship to what is actually being modeled. In a simple linear regression model, we are interested in studying how changes in the independent variable (X) are related to changes in the dependent variable (y).
Therefore, the correct answer is b. y is called the dependent variable.
Know more about dependent variable here,
https://brainly.com/question/1479694
#SPJ11
Taylor buys bottles of nail polish that cost $3. 95 each. She has a maximum of $30 to spend on nail polish purchases. The total cost, with respect to bottles purchased, can be modeled by a function. Which statement correctly defines the domain of the function?.
Answers
The domain of the function will be C. The domain is the set of while numbers greater than or equal to 0 and less than or equal to 7.
Let x = the number of nail polishes that are bought.
Since Taylor buys bottles of nail polish that cost $3. 95 each and she has a maximum of $30 to spend, the number of nail polishes that'll be bought will be:
= 30/3.95.
x = 7.60
In conclusion, the domain is the set of while numbers greater than or equal to 0 and less than or equal to 7.
Learn more about domain on:
https://brainly.com/question/14103691
If a firm's business activities do not result in profit maximization, whilst alternatives exist, then such activities amount to irresponsible actions. Discuss any five sets of economic responsibilities firms must embrace to ensure the protection and enhancement of the business
Answers
Answer:
For companies progress the employer should go for long process in which they can embrace the customer with attractive and responsive policies.
Explanation:
Now, these days companies are coming in front with the issues and responsibilities focus on the rights of women, to protect the environment, to attempt the action to literate the poor people at the level of national, international, and global levels. The companies that want to attract people at a global level they share an attractive hoarding for a customer as well as the shareholders.
To become responsible the company can use the image and be built the brand of the company.Social responsibility makes the employee responsible and encourages them to do something worthwhile for society.Social responsibility can empower the employee.To promote the social responsibilities that can boost the morale of employees.
Discuss any four ways in which Specialization has
improved the economic development of Nigeria
Answers
Answer:
Specialization has helped in these four ways:
1. Has created economics of scale in Nigeria, which improve economic efficiency and increase output while reducing average costs at the same time.
2. Has improved the agricultural sector, which continues to be very important for the Nigerian economy.
3. Has helped bring the electrification of the country.
4. Has helped raise the standard of living in the country, because in general terms, the larger the economy, the higher the standard of living.
Sites like Kickstarter, GoFundMe, and Causes are all examples of what type of altruism?
Group of answer choices
Crowdfunding
Private foundations
Service Learning
Community Service
Answers
as with all financial decisions, a firm should try to establish a capital structure that maximizes the stock price, or shareholder value. this is called the optimal capital structure; it is also the debt-equity mix that:
Answers
The company should aim to establish a capital structure that maximises the stock price, or shareholder value, as with all financial decisions. The ideal capital structure is what we have here. Financial managers want to select a capital structure that minimises WACC because doing so will maximise the firm's value.
Generally speaking, the capital structure that maximises earnings per share also maximises stock price. Generally speaking, a company's debt ratio would tend to increase if the corporate tax rate were to rise. The best combination of debt and equity financing that increases market value while lowering a company's cost of capital is known as an optimal capital structure.
To learn more about capital, click here.
https://brainly.com/question/30319680
#SPJ4
Explain the change in demand for watermelons using evidence, and show this effect on a supply and demand graph.
Answers
Answer:
Explanation:
Changes in the supply of melon
is brought about both positive and negative factors affecting supply of melon apart from the price of melon
Help answer these two questions pleaseee
1. Across the course, you've learned about many other desktop publishing software programs besides PowerPoint. Identify at least two other technologies available for desktop publishing (the software can be presentation-based, word processing, spreadsheet software.etc.). What are some common features across PowerPoint and these other programs?
2. What are 2 differences that could be expected in how an employee would speak to other staff members in a truly flat organizational structure compared to a hierarchical structure?
Answers
Answer:
1.
At least two other technologies available for desktop publishing:
Microsoft WordMicrosoft ExcelMicrosoft PublisherCommon features across PowerPoint and the above programs:
These programs are all part of the Microsoft 365 (formerly Microsoft Office) suite of software tools. They are available for both personal and professional use. All programs use a subscription model. They are designed to be compatible across Microsoft's entire product line and allow for instant collaboration among multiple registered users.
2.
Two differences in how an employee might speak to other staff members in a flat organizational structure versus a hierarchical structure:
Less expectation of formality: speech would likely be delivered in a more casual manner and tone among many staff membersAn increase in dialogue: a reduction or elimination of middle management necessitates increased collaboration among staffwhat types of jobs are most likely to use a pension as compensation?
Answers
In conventional or big companies, pensions are more frequently provided as a form of pay, particularly for occupations in the government such as those in the civil service, military, and education.
They may also be provided in unionized positions or by businesses with a long history of providing pensions to its staff, such certain sizable businesses in the manufacturing or utilities sectors. Pensions are typically offered as a form of remuneration for jobs with longer tenures or high levels of job stability. Pensions are retirement plans that give workers income after they stop working. It is a type of payment that businesses give to their staff in order to give them a reliable source of income throughout their retirement years. Defined benefit and defined contribution pension plans are also options. Under a defined benefit plan, the company guarantees that after retirement, they will pay the employee a specific sum of money.
learn more about pension here:
https://brainly.com/question/14170897
#SPJ4
what are the different administrative Nepal has been divided
Answers
Answer:
Nepal is divided into seven provinces. The provinces are divided into districts. The districts are divided into municipalities and rural municipalities. ... Nepal's new constitution of 2015 has divided the country into seven provinces and removed the older Zones and Development region system.
(●'◡'●)
Explanation:
do you use net worth from business return as value for other asset on personal financial statements?
Answers
A net worth statement is intended to give you a snapshot of your company's financial health other asset on personal financial at a certain point in time.
The value of an individual's or business's assets less the value of the liabilities they have to pay is known as net worth. It offers a valuable snapshot of the company's present financial situation and is a crucial statistic for assessing the health of a business.
The financial industry utilises one's net worth, also known as net wealth, to determine whether or not a person is eligible for a variety of sophisticated or alternative investments such as hedge funds, structured products, or other complex or alternative investing techniques. Popular culture has also become fixated on net worth, with lists rating both the richest individuals and the richest individuals overall.
To know more about Net worth visit:
https://brainly.com/question/28538156
#SPJ4
PLS HELP WILL GIVE BRAINLIEST!!!!
which of the following questions might be asked by an economist who is using critical thinking to a solve a problem?
a. All of these choices are correct.
b.Which principles of command economy have the most negative effects on competition?
c.How could social security and Medicare better use their resources to expand benefits?
d.How might a hurricane in Florida affect the prices of crops grown in the state?
Answers
Answer:
the answer is A because all are correct
The question that might be asked by an economist who is using critical thinking to solve a problem is whether All of these choices are correct. Thus the correct option is A.
What is critical thinking?When using their critical thinking skills, people can decide for themselves what they should indeed or are not supposed to believe. They possess the capacity to reflect and engage in individualism in order to reach well-informed decisions.
Which tenets of the command economy harm competition the most? How Social Security and Medicare could use their resources more effectively to increase payouts will aid economists in finding a solution to a problem.
This questions helps him to identify better answers through research and helps economists to find a better conclusion to deliver an optimum solution to the problem.
Therefore, option A is appropriate.
Learn more about Critical thinking, here:
https://brainly.com/question/29775568
#SPJ2
Which of the following statements regarding the business market is correct?
A. The business market is not as large as the consumer market in terms of dollars spent and items purchased.
B. The business market has more buyers than the consumer market.
C. Business buying decisions are less complex than consumer buying decisions.
D. In the business market buying process, buyers and sellers are less dependent on each other than in the consumer market.
E. Business marketers normally deal with far fewer but far larger buyers than the consumer marketer does.
Answers
The following statement regarding the business market are correct: Business marketers normally deal with far fewer but far larger buyers than consumer marketer does. The correct option is E.
A business market is a market in which firms buy goods and services to use in their production processes. The business market has its own special characteristics and dynamics.
Business marketing is the process of promoting and selling products and services to organizations or other businesses for use in the production of goods and services, for use in general business operations, or for resale to other consumers.
The target market for business marketing is made up of firms or organizations that acquire goods and services to produce their own goods and services, to use in their general business operations, or to resell to other consumers.
The correct option is E.
Learn more about Target market: https://brainly.com/question/20812603
#SPJ11
in the selling process, what term is used to describe prospective customers whose potential must be assessed?
Answers
The term used to describe prospective customers whose potential must be assessed in the selling process is "leads." Leads are potential customers who have shown some level of interest in a product or service and may be in the early stages of the buying process.
It is important for salespeople to identify and evaluate leads in order to determine which ones are worth pursuing and which ones are not likely to result in a sale. This process of lead assessment involves gathering information about the potential customer, such as their needs, budget, decision-making process, and level of authority. By evaluating these factors, salespeople can determine whether a particular lead is a good fit for their product or service and tailor their approach accordingly. Ultimately, the goal is to focus on the most promising leads in order to maximize the chances of making a successful sale.
To know more about customers click this link -
brainly.com/question/31192428
#SPJ11
Which of the following vehicles would have a lower insurance premium?
O A brand new SUV
O A used town car
Answers
Answer:
A used town ca
Explanation:
Because its used and that insures that it works so it makes the insurance go down
The correct answer is option B.
A used town car would have a lower insurance premium.
Insurance premiumAn insurance premium is the amount of money an individual or business pays for an insurance policy. Insurance premiums are paid for policies that cover healthcare, auto, home, and life insurance.
What is an example of a premium in insurance?A premium is the price of the insurance you've chosen, charged by your insurance company. A deductible is an amount you have to pay before your insurance company initiates coverage. For example, if your car insurance premium is $800 per year, you must pay your insurer $800 per year to have the insurance.
Learn more about insurance premiums here https://brainly.com/question/25280754
#SPJ2
ECON QUESTION !!
What is the overall objective of a business raising financial capital?(1 point)
A) decrease operating costs and increase the number of investors
B) increase revenues and the number of investors
C) reducing financial obligations and increase revenue
D) grow and increase profit
chapter 5 test, banking and finance...if you have all the answers that would be greatly appreciated
Answers
The main goal is to increase shareholder value as much as possible.
Businesses frequently make decisions that include spending money now while planning to turn a profit later. Examples are when a business purchases a machine with a 10-year lifespan, constructs a new facility with a 30-year lifespan, or launches a research and development initiative. Four basic methods exist for businesses to obtain the funding they require to fund these initiatives: (1) early-stage investors; (2) profit reinvestment; (3) bank or bond borrowing; and (4) stock sales. Business owners decide how to pay for financial capital sources when they select those sources.
Learn more about financial here-
https://brainly.com/question/29641948
#SPJ1
write two differences between simple clock and atomic clock
Answers
Answer:
Simple clocks measure time by counting, quartz crystal vibrations or mechanical pendulum oscillations. Atomic clocks measure the oscillations in electron transitions by the radiation emitted in the form of microwave or higher frequency electro magnetic waves.
hope it helps.
What is an Individual Asynchronous Communicator? And provide 2 examples of people who are like that
Answers
Answer:
asynchronous communication is when you send a message without expecting an immediate response. For example, you send an email. I open and respond to the email several hours later. You can choose anyone you know for the example of people who are like that part. <3
Explanation:
How did the goal described in this excerpt most affect the u. S. Economy?.
Answers
The described goal that most affect the economy according to the excerpt is when Federal Reserve raised interest rates to control inflation.
What was described in the excerpt?The excerpt quoted George Bush speech about the Iraqis and how their relationship with Saddem Hussein will most affect them and their economy.
However, the goal that most affect the economy according to the excerpt is if Federal Reserve raised interest rates to control inflation.
Therefore, the Option A is correct.
Read more about Federal Reserve
brainly.com/question/25817380
career question #35 easy
Answers
Question 2 (Mandatory) (0.5 points) Saved Which of the following is not part of a Project Management Plan? Question 2 options:
a Clear start and end times
b A salary scale for team member roles
c A work schedule
d A scope of work statement
Answers
The correct answer is b) A salary scale for team member roles.
A Project Management Plan typically includes the following components:
Project Scope: This defines the boundaries and deliverables of the project, outlining what will be included and excluded.
Project Objectives: These are the specific goals and outcomes that the project aims to achieve.
Project Schedule: This includes the timeline, milestones, and key activities of the project, providing a roadmap for project execution.
Work Breakdown Structure (WBS): This breaks down the project into smaller, manageable tasks, creating a hierarchical structure of work packages.
Resource Management: This involves identifying and allocating resources, such as personnel, equipment, and materials, required for project execution.
Risk Management: This includes identifying, assessing, and managing risks and uncertainties that may affect the project's success.
Quality Management: This outlines the quality standards and processes that will be followed to ensure the project's deliverables meet the required quality criteria.
Communication Plan: This defines the communication channels, stakeholders, and frequency of project communication to ensure effective information flow.
Change Management: This outlines the process for managing changes to project scope, schedule, and resources, ensuring that changes are properly evaluated and approved.
Cost Management: This includes estimating, budgeting, and controlling project costs, ensuring that the project is delivered within the allocated budget.
Project Governance: This defines the roles, responsibilities, and decision-making processes within the project, ensuring effective project governance.
From the given options, the component that is not typically part of a Project Management Plan is b) A salary scale for team member roles. While compensation and roles of team members are important considerations, they are generally addressed in a separate document or policy, such as a Human Resources or Team Management plan, rather than within the Project Management Plan itself.
Learn more about a Project Management here:
https://brainly.com/question/6500846
#SPJ4
Note for this question, it is important that you do not round earlier calculations so perform steps in Excel. An interest rate swap with a notional value of $100m has 1 years and 2 months to maturity. Under the terms of the swap, six‐month LIBOR is exchanged for 6% (semi-annual comp) per annum. The Libor/swap rates for maturities of 2, 8, 14 months are 6.5%, 7.0%, 8%, respectively with continuous compounding. The six‐month LIBOR 4 months ago was 6.2% (semi-annual comp) per annum. Assume OIS rates are the same as LIBOR rates. What is the current value of the swap to the party paying fixed? Enter your answer in $ Millions and to 3 decimal places. e.g enter $ 1,567,345.54 as 1.567 without the dollar sign.
Answers
Assume OIS rates are the same as LIBOR rates. $2.821 million is the current value of the swap to the party paying fixed.
The present value of the fixed and floating cash flows of the swap must be determined in order to determine the current worth of the swap to the party paying fixed.
The six-month LIBOR rate from four months ago, which was 6.2% yearly, semi-annually compounded, must also be used.
PV is equal to (0.5 x $100m x (0.065/2) x E(-0.065 2/12) plus (0.5 x $100m x (0.07/2) x e(-0.07 8/12) plus (0.5 x $100m x (0.08/2) x e(-0.08 14/12) plus (0.5 x $100m x (0.062/2) x ex(-0.062 4/12)
PV = $3,178,739.96 $6m - $3,178,739.96 = $2,821,260.04
To three decimal places, the swap is currently worth $2.821 million to the party paying the fixed.
Learn more about on party paying, here:
https://brainly.com/question/30777444
#SPJ4