A US Bank Agrees to a Swap of Making Fixed-Rate Interest

question 64

Multiple Choice

A U.S. bank agrees to a swap of making fixed-rate interest payments of $12 million to a UK bank in exchange for floating-rate payments of LIBOR + 4 percent in British pounds for a notional amount of £100 million. The current exchange rate is $1.50/£. The interest payments will be exchanged at the end of the year at the prevailing rates.
-At the end of year 2, LIBOR rates are 6 percent and the exchange rate is $1.50/£. What is the net payment paid or received in dollars by the U.S. bank?

• A)The U.S.bank paid $9 million and received $9 million for a net payment of $0 million.
• B)The U.S.bank paid $9 million and received $15 million for a net receipt of $6 million.
• C)The U.S.bank paid $12 million and received $9 million for a net payment of $3 million.
• D)The U.S.bank paid $12 million and received $12 million for a net payment of $0 million.
• E)The U.S.bank paid $12 million and received $15 million for a net receipt of $3 million.

Understand the dual nature of light as both waves and particles.

Explain the anatomy of the eye and its role in vision.

Understand how color perception is determined by wavelength.

Understand the basic principles of color vision, including the trichromatic and opponent-process theories.

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Definitions:

Temporal Isolation

A mechanism of reproductive isolation where two species mate or flower at different times, preventing crossbreeding.

Reproductive Isolation

A set of mechanisms that prevent different species from interbreeding.

Ecological Isolation

A form of reproductive isolation where different species live in the same area but occupy different habitats, preventing them from mating and producing offspring.

Balanced Dimorphisms

The occurrence of two different forms or morphs of a species in the same population, maintained in a stable equilibrium through natural selection.