Exhibit 23.7 USE THE INFORMATION BELOW FOR THE FOLLOWING PROBLEM(S)

question 15

Multiple Choice

Exhibit 23.7
USE THE INFORMATION BELOW FOR THE FOLLOWING PROBLEM(S)
The WallMal Company has entered into a 4-year interest rate swap, with semiannual settlement, to pay a fixed rate of 8% per year and receive 6-month LIBOR. The notional principal is $50,000,000.
-Refer to Exhibit 23.7. Indicate the market value of the swap to the WallMal Company.

• A)$3,525,120
• B)-$3,500,000
• C)$1,332,150
• D)-$1,332,150
• E)$1,026,600

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Definitions:

Need Theories

Psychological theories that suggest human behavior is motivated by the desire to fulfill specific basic needs, such as physiological, safety, social, esteem, and self-actualization needs.

Universality

The concept that certain principles, ideas, or traits are common, applicable, or beneficial across all cultures, situations, or groups.

Cultures

The shared values, beliefs, norms, and practices of a group of people that are passed down from generation to generation.

Power Distance

The extent to which an unequal distribution of power is accepted by society members.