ABC International Can Borrow $4,000,000 at LIBOR Plus a Lending

question 63

Multiple Choice

ABC International can borrow $4,000,000 at LIBOR plus a lending margin of 0.65 percent per annum on a three-month rollover basis from Barclays in London.Three month LIBOR is currently 5.5 percent.Suppose that over the second three-month interval LIBOR falls to 5.0 percent.How much will ABC pay in interest to Barclays over the six-month period for the Eurodollar loan?

• A)$50,000
• B)$100,000
• C)$118,000
• D)$120,000

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Definitions:

Chromosomes

Structures found within cells that contain genetic information (DNA) passed from one generation to the next.

Genes

Units of heredity made up of DNA that carry instructions for producing proteins that determine the characteristics of an organism.

Chromosomes

Thread-like structures located inside the nucleus of animal and plant cells, made of protein and a single molecule of deoxyribonucleic acid (DNA), carrying genetic information in the form of genes.

DNA Molecules

The carriers of genetic information in living organisms, consisting of two long strands forming a double helix.