Exhibit 23.3 Use the Information Below for the Following Problem(S)

question 19

Multiple Choice

Exhibit 23.3
Use the Information Below for the Following Problem(S)
Chimichango Industries has decided to borrow $50,000,000.00 for six months in two three-month issues. As the Treasurer, you are concerned that interest rates will rise over the next three months and the rate upon which the second payment will be based will be undesirable. (The amount of Chimichango's first payment will be known at origination.) To reduce the company's interest rate exposure, you decide to purchase a 3 × 6 FRA whereby you pay the dealer's quoted fixed rate of 5.91% in exchange for receiving 3-month LIBOR at the settlement date. In order to hedge her exposure, the dealer buys LIBOR from Megabuks Industries at its bid rate of 5.85%. (Assume a notional principal of $50,000,000.00 and that there are 60 days between month 3 and month 6.)
-Refer to Exhibit 23.3.Assuming that 3-month LIBOR is 5.6% on the rate determination day,and the contract specified settlement in advance,describe the transaction that occurs between the dealer and Chimichango.

• A) The dealer is obligated to pay Chimichango $38,215.00
• B) The dealer is obligated to pay Chimichango $30,818.54.
• C) Chimichango is obligated to pay the dealer $31,818.54.
• D) Chimichango is obligated to pay the dealer $38,215.00
• E) None of the above.

Describe the roles and functions of government corporations, independent agencies, and revenue agencies.

Explain the process of rulemaking and implementation in the federal bureaucracy.

Grasp the origins and purposes of federal bureaus and government hiring practices.

Identify the proportion of the workforce employed by state or local governments and understand trends in government employment.

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Definitions:

Demographic Information

Data that describes the characteristics of a population such as age, race, gender, income, and education.

Unsafe Condition

A situation where the environment or equipment poses a risk of injury or harm to individuals.

Documentation

The collection, organization, and maintenance of written records, reports, or digital information relevant to a particular subject, process, or transaction.

Safety Standards

Established guidelines and regulations designed to minimize risk and ensure safety in various environments and industries.