Exhibit 21 -Refer to Exhibit 21

question 45

Multiple Choice

Exhibit 21.12
Use the Information Below for the Following Problem(S)
Suppose you are a loan officer for a commercial bank and one of your clients has just approached you about a one-year loan for $4,000,000. Interest on the new loan will be paid at the end of each quarter based on the prevailing level of LIBOR at the beginning of each quarter. The LIBOR yield curve in the cash market is as follows:
$\begin{array}{ll}90 \text {-day LIBOR } & 2.70 \% \\180 \text {-day LIBOR } & 2.85 \% \\270 \text {-day LIBOR } & 3.10 \% \\360 \text {-day LIBOR } & 3.40 \%\end{array}$
-Refer to Exhibit 21.12.What is the implied 90-day forward rate at the beginning of the second quarter?

• A) 2.70%
• B) 2.85%
• C) 2.98%
• D) 3.15%
• E) 3.32%

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Definitions:

Humble Background

A term describing an individual's origins in modest circumstances, without privilege or significant resources.

Poverty

A state or condition in which a person or community lacks the financial resources and essentials for a minimum standard of living.

Ordinary Lives

A term that focuses on the daily experiences, routines, and conditions of average people, often historical subjects, outside the realms of elite or prominent figures.