Multiple Choice
You enter into a $100 million notional swap to pay six-month Libor and receive 8%.Payment dates are semi-annual on both legs.The last payment date was March 25 and the next payment date is September 25.Floating payments are based on the USD money-market convention,and fixed payments are based on the 30/360 convention.If the floating rate was reset to 6% on March 25,what is the net amount you will receive on September 25?
A) $933,333
B) $966,667
C) $1,000,000
D) $1,066,667
Correct Answer:
Verified
Correct Answer:
Verified
Q24: A plain vanilla interest-rate swap is an
Q25: You enter into a $100 million notional
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Q27: Who is likely to bear the greater
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Q30: Choose the most appropriate of the following
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