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NEW QUESTION: 1
Calculate the net payment due on a fixed-for-floating interest rate swap where the fixed rate is 5% and the floating rate is LIBOR + 100 basis points. Assume reset dates are every six months, LIBOR at the beginning of the reset period is 4.5% and at the end of the period is 3.5%. Notional is $1m.
A. Fixed rate payer pays $2500
B. Fixed rate payer receives $2500
C. No payments need to be exchanged
D. Floating rate payer receives $5000
Answer: B
Explanation:
Explanation
The LIBOR rate to use is the one at the beginning of the period, is 4.5%. The fixed rate payer owes 5%, and the floating rate payer owes 4.5% + 100bps. Thus the fixed rate payer will receive a payment equal to 0.5% for six months on $1m. This works out to $2500.(Recall that a fixed for floating interest rate swap exchanges fixed for floating rate payments, with only the net payment being made by either party.) The LIBOR rate to use is the one at the beginning of the period, is 4.5%. The fixed rate payer owes 5%, and the floating rate payer owes 4.5% + 100bps. Thus the fixed rate payer will receive a payment equal to 0.5% for six months on $1m. This works out to $2500.
(Recall that a fixed for floating interest rate swap exchanges fixed for floating rate payments, with only the net payment being made by either party.)
NEW QUESTION: 2
Open the windows by clicking on the minimized at the bottom of the viewing area. Windows can be minimized by clicking on the [X], repositioned by dragging the title bar, and resized by using the handle at the lower right corner to customize the viewing area.
If you are required to access the devices to complete this scenario, the mouse cursor will use a hand symbol when moved over device icons. Clicking the icon will open a device terminal so you can interact with the hardware.
Open the Questions window and begin by clicking a question number. When you have completed answering all questions, click Done to continue.
Scenario
Use your UCS knowledge on Adapter errors
... ..........................................configurations.
We are working on which server?
A. 0
B. 1
C. 2
D. 3
E. 4
Answer: E
NEW QUESTION: 3
A. 0
B. 1
C. 2
D. 3
E. 4
Answer: E
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