Suppose That for the Next Five Years Party X Agrees

Multiple Choice

Suppose that for the next five years party X agrees to pay party Y 10% per year, while party Y agrees to pay party X six-month LIBOR (London Interbank Offered Rate) . Party X is a fixed-rate payer / ________, while party Y is a floating-rate payer / ________.

A) fixed-rate receiver; fixed-rate receiver.
B) floating-rate receiver; fixed-rate receiver.
C) floating-rate receiver; floating-rate receiver.
D) floating-rate payer; fixed-rate payer.