USE THE INFORMATION BELOW FOR THE FOLLOWING PROBLEM(S)

question 6

Multiple Choice

USE THE INFORMATION BELOW FOR THE FOLLOWING PROBLEM(S)
The Skalmory Corporation has entered into a three-year interest rate swap, with semiannual settlement, to pay a fixed rate of 7.5 percent per year and receive six-month LIBOR. The notional principal is $10,000,000.
-Refer to Exhibit 15.17. Assume that one year later the fixed rate on a new two-year receive fixed pay floating LIBOR swap has fallen to 7 percent per year. Settlement is on a semiannual basis. Calculate the market value of the FRN based on $100 face value.

• A) $101.33
• B) $100.58
• C) $100.00
• D) $98.67
• E) $95.83

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Definitions:

Skin

The body's largest organ, constituting the outer covering that protects against external factors, regulates temperature, and allows sensory perception.

Kidneys

Bean-shaped organs responsible for filtering waste products from the blood and excreting them, along with water, as urine.

Lungs

Organs in the chest that are crucial for respiration, allowing for the exchange of oxygen and carbon dioxide between the air and blood.

Acetazolamide

A medication used to treat glaucoma, epilepsy, altitude sickness, and as a diuretic to manage fluid retention.