A Thrift Has Funded 10 Percent Fixed-Rate Assets with Variable-Rate

question 76

Multiple Choice

A thrift has funded 10 percent fixed-rate assets with variable-rate liabilities at LIBOR + 2 (L + 2) percent.A bank has funded variable-rate assets with fixed-rate liabilities at 6 percent.The bank's variable-rate assets earn LIBOR + 1 (L + 1) percent.The thrift and the bank have reached agreement on an interest-rate swap with the fixed-rate swap payment at 6 percent and the variable-rate swap payment at LIBOR.

What will be the net after-swap yield on assets for the bank?

• A)Variable-rate at LIBOR.
• B)Fixed-rate at 8 percent.
• C)Fixed-rate at 1 percent.
• D)Fixed-rate at 2 percent.

Understand the factors contributing to job satisfaction and the role of personality characteristics in job satisfaction.

Recognize the motivations behind college attendance in the modern era.

Identify gender differences in job choice criteria and career development.

Comprehend the impact of attachment styles on adult relationships.

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Definitions:

Trabeculae

The network of supporting fibers within organs, especially spongy bone, providing structural support.

Hilum

A depression or notch where structures such as blood vessels and nerves enter an organ.

Cortex

The outer layer of an organ or structure, such as the cerebral cortex of the brain, which processes sensory information and is crucial for cognitive functions.

Pharyngeal Tonsils

Lymphoid tissue located in the upper part of the throat behind the nose, known commonly as adenoids.