USE THE INFORMATION BELOW FOR THE FOLLOWING PROBLEM(S)

question 37

Multiple Choice

USE THE INFORMATION BELOW FOR THE FOLLOWING PROBLEM(S)
The WallMal Company has entered into a four-year interest rate swap, with semiannual settlement, to pay a fixed rate of 8 percent per year and receive six-month LIBOR. The notional principal is $50,000,000.
-Refer to Exhibit 15.19. Indicate the market value of the swap to the WallMal Company.

• A) $3,525,120
• B) -$3,500,000
• C) $1,332,150
• D) -$1,332,150
• E) $1,026,600

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Definitions:

Phlebitis

Inflammation of a vein, usually in the legs, that can cause pain, swelling, redness, and sometimes leading to thrombosis.

Veins Inflammation

Also known as phlebitis, a medical condition characterized by the inflammation of the veins, leading to pain and swelling.

Artery Wall

The multilayered structure of arteries, designed to withstand high pressure from heartbeats and effectively transport blood away from the heart.

Subclavian Artery

A major artery that supplies blood to the head and arms.