Dog's Can Borrow Money at Either a Fixed Rate of 8.25

question 21

Multiple Choice

Dog's can borrow money at either a fixed rate of 8.25 percent or a variable rate set at prime plus 0.5 percent.Cat's can borrow money at either a variable rate of prime plus 1 percent or a fixed rate of 8 percent.Dog's prefers a fixed rate and Cat's prefers a variable rate.Given this information,which one of the following statements is correct?

• A)After a swap with Cat's, Dog's could end up paying a fixed rate of 7.8 percent.
• B)Cat's should end up paying the prime rate if it agrees to an interest rate swap with Dog's.
• C)Both firms will profit if they swap an 8.15 percent fixed rate for a prime plus 0.75 percent variable rate.
• D)Dog's will end up paying no more than 7.75 percent as a fixed rate after a swap with Cat's.
• E)Dog's and Cat's cannot swap interest rates in a manner that will be profitable for both firms.

Learn the methodologies for analyzing genetic predisposition to diseases.

Understand the distinction between genomics, proteomics, and metabolomics and the complexity associated with each.

Recognize the role of regulatory sequences in gene expression.

Understand how genetic information can be exchanged between organisms and its implications.

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Definitions:

Adjusted Cash Balance

The cash amount shown in the accounting records after adjustments have been made for checks, deposits in transit, and other items.

May Bank Reconciliation

A process undertaken to verify the accuracy of financial records by comparing the May bank statement with the company's internal records.

Deposits in Transit

Funds that have been recorded by a company but not yet by its bank, typically due to timing differences.

Bank Reconciliation

The process of comparing and adjusting a company's book balance of an account with the balance reported by a bank to find any possible discrepancies.