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NEW QUESTION: 1
A. Option C
B. Option D
C. Option B
D. Option A
Answer: D
NEW QUESTION: 2
M plc has a $2 million loan outstanding on which the interest rate is reset every 6 months for the following 6 months and the interest is payable at the end of that 6-month period. The next 6-monthly reset period starts in 3 months and the treasurer of M plc thinks that interest rates are likely to rise between now and then.
Current 6-month rates are 7.2% and the treasurer can get a rate of 7.7% for a 6-month forward rate agreement (FRA) starting in 3 months' time. By transacting an FRA the treasurer can lock in a rate today of 7.7%.
If interest rates are 8.5% in 3 months' time, what will the net amount payable be?
Give your answer to the nearest thousand dollars.
Answer:
Explanation:
$77000
NEW QUESTION: 3
A. Option C
B. Option D
C. Option B
D. Option A
Answer: D
Explanation:
Explanation
t1 q8
t1 q8-2
Reference: http://technet.microsoft.com/en-us/magazine/ee677580.aspx
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