MINCIR

From: Ahmed Mustafa (ahmed.mustafa@sbcglobal.net)
Date: Fri Feb 20 2004 - 01:56:07 GMT-3


Brian,

Can you please verify this for me? I followed the Solution Guide, but I have a
mismatch parameters between the solution guide and my calculations.

According to the formula

BC = CIR x Tc/1000
BE = (AR - CIR) x TC/1000

For DLCI 513, the Bc should be 6400 and Be should be zero.
They match exactly according to your solution guide.

For DLCI 504, the Bc should be 5600, and Be according to my calculations,

Be = (1544000 - 512000) x 50/1000 = 51600, but the soultion guide states
51200.

2) The formula says mincir is half of CIR

FOR DLCI 504, it should be then 256000
For DLCI 513, it should be then 64000,

But in solution guide, it was calculated at 75% of CIR.

Regards,

Ahmed



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