A Firm Can Borrow at a Floating Rate of LIBOR

question 94

Multiple Choice

A firm can borrow at a floating rate of LIBOR - 1% on short-term loans.If it swaps its short-term payments so that it receives LIBOR + 1.5% and pays a fixed rate of 5%,what is the rate of interest on its borrowing?

• A)4.5%
• B)2.5%
• C)5.0%
• D)5.5%
• E)7.5%

Know the impact of brain injury or lesions on specific cognitive functions and abilities.

Understand the evolution and role of emotions in human survival according to theoretical perspectives.

Understand the definition and scope of neuroeconomics and its contributions to our understanding of decision making.

Comprehend the neurological basis of visual perception and language processing in split-brain patients.

---

Definitions:

Prejudiced Employer

An employer who harbors preconceived opinions or judgments about certain groups of people, which may unfairly influence hiring or workplace practices.

African Americans

A demographic group in the United States consisting of individuals with partial or total ancestry from any of the black racial groups of Africa.

Distributing Income

The process by which income is allocated among various economic agents, such as individuals, businesses, and government sectors.