Essay
International Corp.can borrow $10,000,000 at LIBOR plus a lending margin of.5 percent per annum on a six-month rollover basis from Deutsche Bank in Frankfurt.Six-month LIBOR is currently 5 percent.Suppose that over the second six-month interval LIBOR rises to 6 percent.How much will International Corp.pay in interest to Deutsche Bank over the one-year period for the Eurodollar loan?
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