Exhibit 21 -Refer to Exhibit 21

question 4

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.If 90-day LIBOR rises to the levels "predicted" by the implied forward rates,what will the dollar level of the bank's interest receipt be at the end of the fourth quarter?

• A) $36,223.50
• B) $40,500.00
• C) $38,250.00
• D) $36,375.00
• E) None of the above

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Definitions:

Common Areas

Areas that are used by all tenants.

Office Building

A structure designed and utilized primarily for the purpose of providing workspaces and offices for businesses and professionals.

Residential Apartment

A housing unit in a building or property, intended for use as a dwelling place by individuals or families.

Tenancy-at-Sufferance

A situation where a tenant remains in possession of property after the expiration of the lease, without the consent of the landlord.