24-82 Assume That the Swap Is for Two Years and That

question 28

Multiple Choice

24-82 Assume that the swap is for two years and that LIBOR is 5.25 percent in year one and 6.25 percent in year two.What will be the net swap cash flow each year if the notional value of a swap is $100 million?

• A)The thrift pays $0.75 million to the bank in year one and receives $0.25 million from the bank in year two.
• B)The thrift receives $0.75 million from the bank in year one and pays $0.25 million to the bank in year two.
• C)The thrift pays $0.25 million to the bank in year one and receives $0.75 million from the bank in year two.
• D)The thrift receives $0.25 million from the bank in year one and pays $0.75 million to the bank in year two.
• E)None of the above.

---

Definitions:

Attachment Process

The development and strengthening of the emotional bond between individuals, influencing social, emotional, and cognitive development.

Harry Harlow

An American psychologist best known for his research on social isolation and maternal separation in rhesus monkeys, which has implications for understanding human attachment and social development.

Cognitive Perspective

A psychological approach that focuses on how we think, understand, and perceive the world around us, emphasizing mental processes.

Object Permanence

Recognition that objects continue to exist even when they are not seen.