Telstra 2007 Annual Report Download - page 249

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Telstra Corporation Limited and controlled entities
246
Notes to the Financial Statements (continued)
(b) Risks and mitigation (continued)
Market risk (continued)
(i) Interest rate risk (continued)
(a) The average rate is calculated as the weighted average (based on
principal/notional value) effective interest rat e.
(b) Used to hedge our net foreign investments.
(c) Rate on cash at bank balances represents average rate earned on
net positive cash balances after taking int o account bank set-off
arrangements.
34. Financial and capital risk management (continued)
Table H Telstra Entity
As at 30 June 2007 As at 30 June 2006
Interest rate range Interest rate range
Average (a) From To Average (a) From To
% % %%%
%
Australian dollar interest rates
Fixed rate instruments
Financial assets
Finance lease receivable . . . . . . . . . . 8.12 4.34 11.43 8.12 4.34 11.43
Financial liabilit ies
Interest rate swaps . . . . . . . . . . . . . 6.33 5.60 7.01 6.47 5.60 7.66
Cross currency swaps . . . . . . . . . . . . 6.69 6.25 7.05 6.69 6.25 7.05
Telstra bonds and domestic loans . . . . 7.21 6.48 12.60 7.21 6.48 12.60
Finance lease liabilities. . . . . . . . . . . 8.28 4.34 11.43 7.56 7.56 7.56
Floating rate instruments
Financial assets
Cash and cash equivalent s (c). . . . . . . 6.30 5.48 6.37 5.81 5.12 5.93
Cross currency swaps . . . . . . . . . . . . 6.36 6.36 6.36 5.89 5.89 5.89
Financial liabilit ies
Loans from wholly owned controlled
entities - interest bearing . . . . . . . . . 6.09 5.70 6.37 5.52 5.45 5.80
Promissory notes . . . . . . . . . . . . . . 6.48 6.43 6.51 5.68 5.65 5.73
Interest rate swaps . . . . . . . . . . . . . 6.95 6.24 7.66 6.21 5.34 7.71
Cross currency swaps . . . . . . . . . . . . 7.27 6.44 7.90 6.67 5.88 7.49
Bank loans . . . . . . . . . . . . . . . . . . - - - 5.82 5.80 5.85
Foreign currency interest rates
Fixed rate instruments
Financial liabilit ies
Offshore loans (b) . . . . . . . . . . . . . . 7.11 7.03 7.19 7.11 7.03 7.19
Floating rate instruments
Financial liabilit ies
Loans from wholly owned controlled
entities - interest bearing . . . . . . . . . 6.28 4.63 7.95 5.46 3.28 7.20
Promissory notes (b) . . . . . . . . . . . . 6.00 4.15 8.49 7.48 7.44 7.54
Cross currency swaps - Hong Kong dollar (b) 4.51 4.50 4.51 4.61 4.60 4.62