A Large Healthcare Corporation Borrows $50,000,000 to Buy an Existing

Multiple Choice

A large healthcare corporation borrows $50,000,000 to buy an existing facility. The loan has a variable interest rate pegged to LIBOR. At the end of this month, how can the corporate accountant determine what the interest payment will be?

A) He can look at the schedule of loan payments created when the loan was made.
B) He can calculate interest from the outstanding principal and the LIBOR value.
C) He must wait for the loan statement from the lending bank.
D) He can calculate the difference between the loan principal and the future value.