U.S. Bancorp and Wells Fargo & Company entered into the fixed-for floating interest rate swap with the following terms, effective for the reset date: Notional principal: $ 10 million Fixed rate: 6.5% Floating rate: 4.6 % + 220 bps Frequency of payments: quarterly Which of the following is most accurate? Select one: at the settlement date the party which has a floating leg will make a payment of $7 500 at the settlement date the party which has a fixed leg will make a payment of $7 500 at the settlement date the party which has a floating leg will make a payment of $30 000 at the settlement date the party which has a floating leg will make a payment of $680 000, and the party which has a fixed leg will make a payment of $650 000 at the settlement date the party which has a floating leg will make a payment of $170 000, and the party which has a fixed leg will make a payment of $162 500 at the settlement date the party which has a fixed leg will make a payment of $30 000
U.S. Bancorp and Wells Fargo & Company entered into the fixed-for floating interest rate swap with the following terms, effective for the reset date: Notional principal: $ 10 million Fixed rate: 6.5% Floating rate: 4.6 % + 220 bps Frequency of payments: quarterly Which of the following is most accurate? Select one: at the settlement date the party which has a floating leg will make a payment of $7 500 at the settlement date the party which has a fixed leg will make a payment of $7 500 at the settlement date the party which has a floating leg will make a payment of $30 000 at the settlement date the party which has a floating leg will make a payment of $680 000, and the party which has a fixed leg will make a payment of $650 000 at the settlement date the party which has a floating leg will make a payment of $170 000, and the party which has a fixed leg will make a payment of $162 500 at the settlement date the party which has a fixed leg will make a payment of $30 000
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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15)
U.S. Bancorp and Wells Fargo & Company entered into the fixed-for floating interest rate swap with the following terms, effective for the reset date:
Notional principal: $ 10 million
Fixed rate: 6.5%
Floating rate: 4.6 % + 220 bps
Frequency of payments: quarterly
Which of the following is most accurate?
Notional principal: $ 10 million
Fixed rate: 6.5%
Floating rate: 4.6 % + 220 bps
Frequency of payments: quarterly
Which of the following is most accurate?
Select one:
at the settlement date the party which has a floating leg will make a payment of $7 500
at the settlement date the party which has a fixed leg will make a payment of $7 500
at the settlement date the party which has a floating leg will make a payment of $30 000
at the settlement date the party which has a floating leg will make a payment of $680 000, and the party which has a fixed leg will make a payment of $650 000
at the settlement date the party which has a floating leg will make a payment of $170 000, and the party which has a fixed leg will make a payment of $162 500
at the settlement date the party which has a fixed leg will make a payment of $30 000
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