Exhibit 23.9 Use the Information Below for the Following Problem(S)

question 26

Multiple Choice

Exhibit 23.9
Use the Information Below for the Following Problem(S)
The Skalmory Corporation has entered into a 3-year interest rate swap, with semiannual settlement, to pay a fixed rate of 7.5% per year and receive 6-month LIBOR. The notional principal is $10,000,000.
-Refer to Exhibit 23.9.Assume that one year later the fixed rate on a new 2-year receive fixed pay floating LIBOR swap has fallen to 7% per year.Settlement is on a semiannual basis.Calculate the market value of the FRN based on $100 face value.

• A) $101.33
• B) $100.58
• C) $100.00
• D) $98.67
• E) $95.83

---

Definitions:

Probability

The measure of the likelihood that an event will occur, quantified as a number between 0 and 1.

Grapevine

An informal communication network within an organization, characterized by personal conversations and exchanges of information beyond official channels.

Email

A method of exchanging messages and information electronically over a computer network.

Challenges

Situations or obstacles that require effort, skill, or innovation to overcome, often serving as opportunities for growth or improvement.