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.

Grasp the techniques and applications of brain stimulation methods for treating neurological disorders.

Understand the scope and objectives of behavioral neuroscience as a field, including its methodologies and ethical considerations.

Understand the concept and implications of epigenetics.

Differentiate among various brain recording and imaging techniques, including their principles and applications.

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Definitions:

Continental Crust

The layer of igneous, sedimentary, and metamorphic rocks that forms the continents and continental shelves, characterized by its thickness and composition distinct from oceanic crust.

Mafic Basalt

A type of basaltic rock that is rich in magnesium and iron, characterized by its dark color and low silica content.

Decompression Melting

The melting of rock due to a decrease in pressure as it rises towards the Earth's surface, a common mechanism at mid-ocean ridges and mantle plumes.

Mantle-Derived Magmas

Magmas that originate from the partial melting of the Earth's mantle, often rich in magnesium and iron.