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

question 104

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 Assume that one year later the fixed rate on a new 3-year receive fixed pay floating LIBOR swap has risen to 9% per year. Settlement is on a semiannual basis. Calculate the market value of the FRN based on $100 face value.

• A) $97.42
• B) $100.00
• C) $92.56
• D) $99.63
• E) $75.77

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Definitions:

Problem Solving

The process of identifying challenges and finding creative solutions to overcome them.

Cross-Functional Teams

Groups composed of members from different departments or areas of expertise working together towards a common goal.

Communication

The act of exchanging information or transmitting ideas, thoughts, or knowledge between sender and receiver through various methods, whether verbal, non-verbal, written, or visual.

Team Cohesiveness

The extent to which group members are united in pursuing common goals and exhibit loyalty and mutual support.