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14. ABC International can borrow $4,000,000 at LIB OR plus a lending margin of 0.65 percent per annum on a threemonth rollover basis from Barclays

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14. ABC International can borrow $4,000,000 at LIB OR plus a lending margin of 0.65 percent per annum on a threemonth rollover basis from Barclays in London. Three month LIB OR is currently 5.5 percent. Suppose that over the second threemonth interval LIB OR falls to 5.0 percent. How much will ABC pay in interest to Barclays over the sixmonth period for the Eurodollar loan? A. $50,000 B. $100,000 C. $118,000 D. $120.000

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