USE THE INFORMATION BELOW FOR THE FOLLOWING PROBLEM(S)

question 64

Multiple Choice

USE THE INFORMATION BELOW FOR THE FOLLOWING PROBLEM(S)
Darden Industries has decided to borrow $25,000,000.00 for six months in two three-month issues. As the Treasurer, you are concerned that interest rates will rise over the next three months and the rate upon which the second payment will be based will be undesirable. (The amount of Darden's first payment will be known at origination.) To reduce the company's interest rate exposure, you decide to purchase a 3 * 6 FRA whereby you pay the dealer's quoted fixed rate of 4.5 percent in exchange for receiving three-month LIBOR at the settlement date. In order to hedge her exposure, the dealer buys LIBOR from McIntire Industries at its bid rate of 4 percent. (Assume a notional principal of $25,000,000.00 and that there are 60 days between month 3 and month 6.)
-Refer to Exhibit 15.15. How much compensation does the dealer receive for transaction costs, credit risk, and other costs associated with matching the FRAs?

• A) $31,250
• B) $21,350
• C) $41,000
• D) $48,150
• E) $52,000

Know the structure and categories of the Evaluation and Management (E/M) section codes.

Distinguish between different volumes of the ICD-9-CM manual and their uses.

Recognize the organizations responsible for the approval and maintenance of National codes.

Understand the purpose and use of tools like crosswalks or general equivalence mappings in coding conversions.

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Definitions:

False

Not true or correct; erroneous.

Deductively Valid

A characteristic of an argument where if the premises are true, the conclusion must also be true.

Sound

A deductive argument that is valid and that has true premises.

False Conclusion

An incorrect decision or inference drawn from reasoning or argumentation, often due to flawed logic or premises.