Multiple Choice
Consider a $100 five-year zero-coupon swap to pay fixed and receive floating.The five-year spot rate is 5% expressed with semi-annual compounding.The floating leg makes payments every six months indexed to Libor.What is the final payment on the fixed leg of this swap?
A) $78
B) $100
C) $125
D) $128
Correct Answer:
Verified
Correct Answer:
Verified
Related Questions
Q5: Consider the following table of prices
Q6: A bank makes long-term fixed-rate loans,and funds
Q7: Firm A can borrow at 4%
Q8: You enter into a $100 million notional
Q9: You enter into a $100 million
Q11: You have entered into a swap where
Q12: You have sold a $10,000 notional
Q13: Which of the following is not true
Q14: The main difference between the "short-form" and
Q15: The US swap market convention,that is used