Exhibit 21 -Refer to Exhibit 21

question 14

Multiple Choice

Exhibit 21.3
Use the Information Below for the Following Problem(S)
As a relationship officer for a money-center commercial bank, one of your corporate accounts has just approached you about a one-year loan for $3,000,000. The customer would pay a quarterly interest expense based on the prevailing level of LIBOR at the beginning of each quarter. As is the bank's convention on all such loans, the amount of the interest payment would then be paid at the end of the quarterly cycle when the new rate for the next cycle is determined. You observe the following LIBOR yield curve in the cash market:
$\begin{array}{ll}90 \text {-day LIBOR } & 4.70 \% \\180 \text {-day LIBOR } & 4.85 \% \\\text { 270-day LIBOR } & 5.10 \% \\\text { 360-day LIBOR } & 5.40 \%\end{array}$
-Refer to Exhibit 21.3.What is the implied 90-day forward rate at the beginning of the third quarter?

• A) 5.10%
• B) 5.47%
• C) 4.70%
• D) 4.85%
• E) None of the above

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Definitions:

Cardiac Muscle

A type of involuntary striated muscle found exclusively in the heart, responsible for heart contractions.

Left Coronary Artery

The artery that supplies blood to the left side of the heart, branching into the circumflex and left anterior descending arteries.

Interventricular Septum

The stout wall separating the ventricles of the heart beneath the aortic valve.

Myocardium

The muscular tissue of the heart, responsible for contracting and pumping blood through the body.