Exhibit 23.9 Use the Information Below for the Following Problem(S)

question 34

Multiple Choice

Exhibit 23.9
Use the Information Below for the Following Problem(S)
The Skalmory Corporation has entered into a 3-year interest rate swap, with semiannual settlement, to pay a fixed rate of 7.5% per year and receive 6-month LIBOR. The notional principal is $10,000,000.
-Refer to Exhibit 23.9.Assuming that one year after the swap was initiated the fixed rate on a new 2-year receive fixed pay floating LIBOR swap has fallen to 7% per year,calculate the market value of the 7.5% fixed rate bond based on $100 face value.Settlement is on a semiannual basis.

• A) $101.33
• B) $100.92
• C) $100.00
• D) $98.67
• E) $95.83

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Definitions:

Intrarole Conflict

A situation where contradictory expectations arise concerning a single role, causing stress and confusion for the role occupant.

Manufacturing Flaws

Defects or imperfections in a product that occur during its production process, often leading to reduced quality or functionality.

Assembly Line

A manufacturing process in which parts are added to a product in a sequential manner to create a finished product efficiently.

Fight-or-Flight Response

A physiological reaction that occurs in response to a perceived harmful event, attack, or threat to survival.