USE THE INFORMATION BELOW FOR THE FOLLOWING PROBLEM(S)

question 68

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) $5,786,345
• B) -$3,575,987
• C) $1,289,450
• D) -$1,514,900
• E) $1,250,075