Suppose That You Are a Swap Bank and You Notice

question 89

Multiple Choice

Suppose that you are a swap bank and you notice that interest rates on zero coupon bonds are as shown.Develop the 3-year bid price of a dollar swap quoted against flat USD LIBOR. $$\begin{array} { | l | l | l | l | } \hline \begin{array} { l } \text { Zero } \\\text { Rates }\end{array} & 1 \text {-year } & \text { 2-year } & \text { 3-year } \\\hline \text { USD } & \$ 3 \% & \$ 4 \% & \$ 5 \% \\\hline \text { euro } & € 2 \% & € 3 \% & € 4 \% \\\hline\end{array}$$ In other words,what will you be willing to pay in euro against receiving USD LIBOR?

• A)5%
• B)4%
• C)3%
• D)2%

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Definitions:

Sexual Maturity

is the stage of development where an individual is physically and hormonally mature and capable of reproduction.

Males

Refers to the biologically male sex, typically characterized by XY chromosomes, and associated with specific gender roles and characteristics.

Females

In biological terms, refers to the sex of an organism or individual that typically produces eggs (ova) or has XX chromosomes.

Self-efficacy

The belief in one’s abilities to meet challenges and successfully execute tasks.