In an Interest Rate Swap on a Fixed Rate 8

question 24

Multiple Choice

In an interest rate swap on a fixed rate 8% debt of $100,000, where the floating rate is 6%, the annual net interest settlement in cash is:

• A)$0
• B)$2,000
• C)$6,000
• D)$8,000

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Definitions:

Point P

This term could be referring to a specific point on a graph or chart, usually in a mathematical or economic context, representing a particular value or condition.

Production Possibilities Curve

A graphical representation showing the maximum quantity of goods and services that an economy can produce when all resources are fully employed.

Education Level

A measurement of the highest stage or degree of formal learning or training that an individual has completed.

Labor Force

Refers to the total number of people, including both the employed and the unemployed, who are currently available to engage in the production of goods and services in an economy.