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You Enter into a $100 Million Notional Swap to Pay

Question 8

Multiple Choice

You enter into a $100 million notional swap to pay six-month Libor and receive 6%.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) 0.
B) -$66,667.
C) +$66,667
D) +133,333

Correct Answer:

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