Exhibit 23.7 Use the Information Below for the Following Problem(S)

question 10

Multiple Choice

Exhibit 23.7
Use the Information Below for the Following Problem(S)
The WallMal Company has entered into a 4-year interest rate swap, with semiannual settlement, to pay a fixed rate of 8% per year and receive 6-month LIBOR. The notional principal is $50,000,000.
-Refer to Exhibit 23.7.Assume that one year later the fixed rate on a new 3-year receive fixed pay floating LIBOR swap has fallen to 7% per year.Settlement is on a semiannual basis.Calculate the market value of the FRN based on $100 face value.

• A) $102.66
• B) $100.00
• C) $95.56
• D) $89.63
• E) $70.77

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Definitions:

Cathartic Nature

Refers to the cleansing or purifying effect of experiencing certain emotions or expressions, often associated with art, drama, and literature.

Aristotle

An Ancient Greek philosopher and polymath, a student of Plato and teacher of Alexander the Great, known for his contributions to logic, metaphysics, ethics, and natural sciences.

Drama

A genre of narrative fiction (or semi-fiction) intended to be more serious than humorous in tone, focusing on in-depth development of realistic characters and emotional themes.

Aesthetic Emotion

Emotional responses or feelings elicited by experiencing beauty or what is perceived as artistic in the visual arts, music, literature, and nature.