Find the Upcoming Payment Interest Payments in a Currency Swap

question 12

Multiple Choice

Find the upcoming payment interest payments in a currency swap in which party A pays U.S.dollars at a fixed rate of 5 percent on notional amount of $50 million and party B pays Swiss francs at a fixed rate of 4 percent on notional amount of SF35 million.Payments are annual under the assumption of 360 days in a year,and there is no netting.

• A)party A pays $2,500,000,and party B pays SF1,400,000
• B)party A pays SF1,400,000,and party B pays $2,500,000
• C)party A pays SF1,750,000,and party B pays SF1,400,000
• D)party A pays $2,500,000,and party B pays $2,000,000
• E)party A pays $50 million,and party B pays SF35 million

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Definitions:

High Arousal

A state of heightened physiological and emotional intensity, often linked to stress, excitement, or anxiety.

Hypothalamus

A region of the brain that controls an array of bodily functions including temperature regulation, hunger, and emotional responses.

Thalamus

A structure in the brain that acts as a relay station, transmitting sensory and motor signals to the cerebral cortex, and regulating consciousness, sleep, and alertness.

Pons

A portion of the brainstem involved in regulating vital functions such as breathing, sleep cycles, and communication between different parts of the brain.