Find the All-In-Cost of a Swap to a Party That

question 15

Multiple Choice

Find the all-in-cost of a swap to a party that has agreed to borrow $5 million at 5 percent externally and pays LIBOR + ½ percent on a notational principal of $5 million in exchange for fixed rate payments of 6 percent.

• A)LIBOR + ½ percent
• B)LIBOR
• C)LIBOR − ½ percent
• D)none of the options

---

Definitions:

Self-Care Deficit

A situation where an individual is unable to perform basic self-care activities due to physical, psychological, or developmental reasons.

Toe-Touch Weight Bearing

A partial weight-bearing rehabilitation technique where the patient can only touch the toe of the injured leg on the ground for balance, without transferring weight onto it.

Prosthesis

A device designed to replace a missing part of the body or to make a part of the body function better.

Postanesthesia Care Unit

A specialized hospital unit where patients are monitored and recover immediately after anesthesia and surgery.