ABC CorpEntered into a Currency Swap with Its Bank, Providing That

question 113

Multiple Choice

ABC Corp.entered into a currency swap with its bank, providing that ABC borrows $5 million at 10 percent and swaps for a 12 percent yen loan.The spot exchange rate is ¥105/$.If interest only is to be repaid on an annual basis, how much does ABC pay annually to the bank? (answer in millions)

• A)¥1.26 million
• B)¥5.71 million
• C)¥52.50 million
• D)¥63.00 million

Identify and utilize strategies for comprehensive communication that answers audience's needs and questions.

Understand how to use passive voice appropriately to manage tone and tact, especially in sensitive situations.

Distinguish the implications of using different grammatical persons (first, second, third) in messages and their effects on reader engagement and message clarity.

Recognize how messages can be made complete by clearly directing the audience on what to do next.

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Definitions:

Earnings Before Interest

A company's earnings calculated before interest expenses have been deducted, often referred to as EBIT (Earnings Before Interest and Taxes).

Tax Authorities

Governmental agencies responsible for the collection of taxes, enforcement of tax laws, and the administration of tax policy.

Net Sales

Revenue from the sale of goods or services after the deduction of returns, allowances for damaged or missing goods, and discounts.