A USBank Agrees to a Swap of Making Fixed-Rate Interest Payments

question 80

Multiple Choice

A U.S.bank agrees to a swap of making fixed-rate interest payments of $12 million to a UK bank in exchange for floating-rate payments of LIBOR + 4 percent in British pounds for a notional amount of £100 million.The current exchange rate is $1.50/£.The interest payments will be exchanged at the end of the year at the prevailing rates. At the end of the year, LIBOR is 4 percent and the exchange rate is $1.50/£.What is the net payment paid or received in dollars by the U.S.bank?

• A)The U.S.bank paid $12 million and received $8 million for a net payment of $4 million.
• B)The U.S.bank paid $12 million and received $10 million for a net payment of $2 million.
• C)The U.S.bank paid $12 million and received $12 million for a net receipt of $0 million.
• D)The U.S.bank paid $12 million and received $14 million for a net receipt of $2 million.
• E)The U.S.bank paid $12 million and received $16 million for a net receipt of $4 million.

Identify the mechanisms through which religion and culture legitimize power in societies.

Identify the nature and implications of warfare and violence in human societies.

Understand the dynamics of cultural change through events like acculturation and ethnocide.

Appreciate the significance of negotiations and the role of community in dispute resolutions.

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Definitions:

Unified Modeling Language (UML)

A standardized modeling language used in software engineering to visualize the design of a system.

Graphically

Pertaining to visual representation, especially in the context of data visualization, user interfaces, or graphical elements in applications.

Shallow Copying

The process of creating a new object and copying the field values of an existing object into it without recursively copying objects referenced by the fields.

Reference Variable

A variable in programming that holds a reference (or address) to an object rather than the object's value itself.