Firm a Can Borrow at 4% Fixed or in the Floating-Rate

question 7

Multiple Choice

Firm A can borrow at 4% fixed or in the floating-rate market at Libor flat.Firm B can borrow at 7% fixed or at Libor $+ 100$ bps.A wants to borrow floating and B fixed. Suppose that to reduce financing costs,A borrows fixed,B borrows floating,and they enter into an interest-rate swap.Which of the following statements is valid?

• A)The combined improvement in cost of financing to A and B with the swap is always equal to the difference between the fixed rate differential (between A and B)and the floating rate differential which in this case is 200 basis points.
• B)The combined improvement in cost of financing to A and B with the swap is always equal to the floating rate differential,which in this case is 100 basis points.
• C)The combined improvement in cost of financing to A and B with the swap depends on the negotiated fixed rate on the swap between the two counterparties.
• D)No improvement in combined financing costs is possible-what one party gains in financing costs,the other party loses.

Discuss the biological and evolutionary perspectives on personality traits.

Describe the principles of reciprocal determinism and self-efficacy as proposed by Bandura.

Critique the strengths and limitations of humanistic psychology in understanding personality.

Understand the concept of self-actualization and its significance in human behavior.

---

Definitions:

Problem/Causes/Solution

A structured approach to identifying issues, understanding their causes, and proposing solutions to address them.

Presentation Consideration

Factors taken into account to prepare and deliver an effective and engaging presentation.

Next Speaker

The subsequent individual scheduled to speak or present in a sequence of events.

Equipment

Machinery, tools, or devices necessary for the completion of a task.