This excerpt taken from the MGIC 20-F filed May 16, 2008.
Fair value of financial instruments
The following methods and assumptions were used by the Company and its subsidiaries in estimating their fair value disclosures for financial instruments:
The carrying amounts of cash and cash equivalents, trade receivables and other accounts receivable, short-term bank credit, trade payables and other accounts payable approximate their fair value due to the short-term maturity of these instruments.
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The fair values for marketable securities are presented based on quoted market prices (see also Note 3).
The carrying amount of the Companys long-term borrowing approximates its fair value. The fair value was estimated using discounted cash flow analyses, based on the Companys incremental borrowing rates for similar type of borrowing arrangements.