You Enter into a $100 Million Notional Swap to Pay

question 18

Multiple Choice

You enter into a $100 million notional swap to pay six-month Libor and receive 8%. Payment dates are semi-annual on both legs. The last payment date was March 25 and the next payment date is September 25. Floating payments are based on the USD money-market convention, and fixed payments are based on the 30/360 convention. If the floating rate was reset to 6% on March 25, what is the net amount you will receive on September 25?

• A) $933,333
• B) $966,667
• C) $1,000,000
• D) $1,066,667

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Definitions:

Violent Criminal

An individual who commits acts of violence or aggression as part of their criminal behavior.

Resocialization

Resocialization is the process by which individuals undergo a significant change in norms, values, attitudes, or behaviors through deliberate influence, as in a new organizational culture or rehabilitation program.

Initiation Rite

A cultural practice or ceremony that marks the entry or transition of an individual into a new role, status, or social group.

Institutional Ritual

Ceremonies or practices that are regularly observed within an institution, organization, or community to affirm identity and values.