Question
1. An EUR 100 million 7-year interest rate swap has mid-market quote of 1.88% against Euribor. The fixed rate is paid semi-annually. The bid/offer spread
1.An EUR 100 million 7-year interest rate swap has mid-market quote of 1.88% against Euribor. The fixed rate is paid semi-annually. The bid/offer spread is two basis points p.a. In price terms, the cost of this bid/offer spread is closestto:
A.EUR130,000
B.EUR130,600
C.EUR260,000
D.EUR261,200
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Fundamentals Of Financial Management
Authors: James Van Horne, John Wachowicz
13th Revised Edition
978-0273713630, 273713639
