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:

Flexor Carpi Radialis

A muscle in the forearm that acts to flex and abduct the hand at the wrist joint.

Abductor Pollicis Longus

A muscle in the forearm that facilitates the abduction and extension of the thumb.

Flexor Digitorum Profundus

A muscle in the forearm that flexes the fingers, enabling grasping, writing, and other intricate movements.

Triceps Brachii

A large muscle on the back of the upper arm responsible for extension of the elbow joint.