IBM and AT&T Decide to Swap $1 Million Loans

question 8

Multiple Choice

IBM and AT&T decide to swap $1 million loans.IBM currently pays 9.0% fixed and AT&T pays 8.5% on a LIBOR + 0.5% loan.What is the net cash flow for IBM if they swap their fixed loan for a LIBOR + 0.5% loan and LIBOR rises to 8.5%?

• A) -$50,000
• B) $50,000
• C) -$90,000
• D) 0

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Definitions:

Patriarchal Power

A social system where men hold primary power and predominate in roles of political leadership, moral authority, and control over property.

Glass Ceiling

An invisible institutional barrier that limits professional women’s progress into the upper echelons of an organization.

Male-Dominated

Describes a field or environment where men are overwhelmingly the majority, often possessing greater authority, power, or influence than women.