![]() Variable rates are sometimes known as floating rates and they are usually set with reference to a benchmark such as SONIA, the Sterling Overnight Index Average. When taking out a loan or depositing money, businesses will often have a choice of variable or fixed rates of interest. Traditional and basic approaches Matching and smoothing The primary aim is to limit the uncertainty for the business so that it can plan with greater confidence. Note carefully that the primary aim of interest rate risk management (and indeed foreign currency risk management) is not to guarantee a business the best possible outcome, such as the lowest interest rate it would ever have to pay. There is, of course, always a risk that if a business had committed itself to variable rate borrowings when interest rates were low, a rise in interest rates might not be sustainable by the business and then liquidation becomes a possibility. It will have less confidence in its project appraisal decisions because changes in interest rates may alter the weighted average cost of capital and the outcome of net present value calculations. If the business does not know its future interest payments or earnings, then it cannot complete a cash flow forecast accurately. (ii) how much interest they might earn on deposits, either already made or planned. (i) how much interest they might have to pay on borrowings, either already made or planned, or Interest rate risk arises when businesses do not know: Risk arises for businesses when they do not know what is going to happen in the future, so obviously there is risk attached to many business decisions and activities. (No numerical questions will be set on this topic) The cause of interest rate risk (b) Identify the main types of interest rate derivatives used to hedge interest rate risk and explain how they are used in hedging. (a) Discuss and apply traditional and basic methods of interest rate risk management, including: Section G of the Financial Management Study Guide specifies the following relating to the management of interest rate risk: An introduction to professional insights.Virtual classroom support for learning partners.Becoming an ACCA Approved Learning Partner.Suppose you have a table of data in cells B2:D10, and you want to reference a range that starts one rows below cell B2 and two rows to the right side extends for four rows and one columns. Here's an example of how to use the OFFSET formula: Note 2: Height and Width must be positive numbers Note 1: Reference must refer to a cell or range of adjacent cells otherwise, OFFSET returns the #VALUE! error value. If omitted, the range will have the same width as the reference range. : This is an optional argument that specifies the width of the range that you want to return. If omitted, the range will have the same height as the reference range. : This is an optional argument that specifies the height of the range that you want to return. It can be a positive or negative number.Ĭols: This is the number of columns that you want to offset from the starting cell or range. Rows: This is the number of rows that you want to offset from the starting cell or range. It can be either a cell reference or a named range. Reference: This is the starting cell or range from which you want to offset. Please see below for the Syntax to using the OFFSET function: How to use the OFFSET formula in Excel? Overall, the OFFSET formula is a versatile and useful tool for working with dynamic data in Excel. Building interactive dashboards: You can use OFFSET to build interactive dashboards that allow users to select different data ranges or periods.Moving or copying data: OFFSET can be used to move or copy data within a worksheet.Summing a range of cells: You can use OFFSET to sum a range of cells based on a dynamic starting point and length.Creating dynamic ranges and charts: OFFSET can be used to create a range of cells or a dynamic chart that adjusts automatically as new data is added to a worksheet. ![]() The OFFSET formula in Excel is a powerful tool that allows you to dynamically reference a range of cells in a worksheet. Where is the OFFSET Function in Excel useful? You can use the OFFSET formula in a variety of ways, such as to dynamically reference ranges based on the value of a cell or to create dynamic named ranges. The OFFSET formula in Excel is a powerful function that allows you to reference a cell or range of cells that is a specified number of rows and columns away from a starting cell or range. In this article you will learn how to use the OFFSET formula in Excel.
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