Exhibit 14-10 USE THE FOLLOWING INFORMATION FOR THE NEXT QUESTION(S)

question 11

Multiple Choice

Exhibit 14-10
USE THE FOLLOWING INFORMATION FOR THE NEXT QUESTION(S)
The WallMal Company has entered into a 4-year interest rate swap, with semiannual settlement, to pay a fixed rate of 8% per year and receive 6-month LIBOR. The notional principal is $50,000,000.
-Refer to Exhibit 14-10. 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

---

Definitions:

Plato

An ancient Greek philosopher who made foundational contributions to Western thought, particularly in areas of ethics, politics, and metaphysics.

Expectations

Refers to the anticipations or beliefs regarding future events or outcomes, can significantly influence attitudes and decisions.

Rats

Commonly used as model organisms in psychological and neurological research due to their similarity to humans in physiology, behavior, and genetics.

Nativism

A philosophical doctrine emphasizing the role of innate factors in the acquisition of knowledge.