Compute the Payments Due in the Second Year on a Three-Year

question 70

Multiple Choice

Compute the payments due in the second year on a three-year AMORTIZING swap from company B to company
A) B pays £402,114.80 to A

• A)B pays £402,114.80 to A
• A) Company A and company B both want to borrow £1,000,000 for three years. A wants to borrow floating and B wants to borrow fixed. A and B agree to split the QSD.
• B) B pays £100,000 to A
• C) B pays £69,788.52 to A
• D) None of the above

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Definitions:

Gametophyte

The sexual phase in the life cycle of plants and algae that produces gametes.

Sporophyte

Diploid generation of the alternation-of-generations life cycle of a plant; produces haploid spores that develop into the haploid generation.

Fertilization

The process by which a sperm cell and an egg cell unite, resulting in the formation of a zygote, marking the beginning of a new organism's development.

Sporangia

Structures in fungi, algae, and plants where spores are formed and stored, playing a key role in reproduction and dispersal.