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

question 45

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.What is the market value of the swap to the Skalmory Corporation?

• A) -$9,000,000
• B) -$1,804,000
• C) -$87,654
• D) $91,830
• E) $7,620,000

---

Definitions:

General Journal

A primary accounting record used to keep track of all business transactions not recorded in specialized journals, using the double-entry accounting method.

Periodic Inventory System

An inventory system that updates inventory balances at specific intervals instead of continuously, often requiring a physical count.

General Journal

A primary accounting record where financial transactions are chronologically recorded before being posted to specific accounts in the general ledger.

Purchases Transactions

Activities related to buying goods and services for use or resale by a business.