This case provides students with an opportunity to appraise effectiveness and the mechanics of an interest rate swap in an actual circumstances. Rothmans Inc. enter into an interest rate swap in the year 2001, and the business’s public financial statements enable readers to follow the swap through several years until the ultimate early pay-off in 2005.
Pupils can determine if the choice to exit the interest rate swap early was good or awful. This simplicity provides a great learning environment using data that is freely available.
Learning Objective: Students will have the ability to:
Realize how an interest rate swap operates from inception to termination.
Form their own opinions about the value of using interest rate swaps to handle against changes in interest rates.
Discuss the benefits and drawbacks of Rothmans’ direction choices as disclosed in the company’s public financial statements.
Rothmans Inc. — The Curious Case of the Interest Rate Swap case study solution
Publication Date: 08/28/2012
This is just an excerpt. This case is about Accounting
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