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:

Feeding Tube

A medical device used to provide nutrition to individuals who cannot obtain nutrition by mouth, are unable to swallow safely, or need nutritional supplementation.

Narcotic

A class of substances that produce analgesia and CNS depressant effects, which can lead to dependence and addiction.

Medication Dispenser

A device or system used to organize, store, and dispense medications at predetermined times to ensure proper medication management and adherence.

Saline Lock

A medical device used to maintain a patent intravenous access without continuous fluid infusion.