This Case is about FINANCIAL MANAGEMENT
PUBLICATION DATE: August 28, 2012 PRODUCT #: W12164-HCB-ENG
This case present pupils with a chance to assess effectiveness and the mechanisms of an interest rate swap in a real scenario. Rothmans Inc. entered into an interest rate swap in 2001, and the firm’s public financial statements enable readers to follow the swap through several years until the ultimate early payoff in 2005. Pupils may discover whether the choice to leave the interest rate swap was awful or great. Rothmans has just one five-year bank term loan and one interest rate swap covering half of the value of the loan. This straightforwardness offers a great learning environment using data that is generously accessible.