Find the Market Value of a Plain Vanilla Swap from the Perspective

question 50

Multiple Choice

Find the market value of a plain vanilla swap from the perspective of the fixed rate payer in which the upcoming payment is in 30 days,and there is one more payment 180 days after that.The fixed rate is 7 percent and the upcoming floating payment is at 6.5 percent.The notional principal is $15 million.Assume 360 days in a year.The prices of Eurodollar zero coupon bonds are 0.9934 (30 days) and 0.9528 (210 days) .

• A)the fixed payer pays $31,763.75
• B)the fixed payer pays $71,527.50
• C)the floating payer pays $49,500
• D)the floating payer pays $194,228
• E)none of the above

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Definitions:

Constructivist Therapies

A category of psychotherapy that holds that reality is constructed through human activity; therapies focus on the client's perspective and aim to facilitate change through exploration of personal meaning.

Therapy Techniques

Methods and strategies employed by therapists to facilitate psychological healing and growth in individuals, couples, or groups.

Comprehensive Theory

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A professional who emphasizes the development and implementation of solutions to clients' issues over analyzing the problems or their origins.