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Which of the following must be positive? All legal loan covenants The change in the value of a long interest rate futures contract when interest rates decrease O A change in the market value of equity for a zero DGAP bank, when interest rates increase O A bank's DGAP O A bank's dollar GAP An investor obtains a mortgage loan to purchase a $100,000 home, borrowing 90% of the cost of the home and investing 10% of her own money. The loan's interest rate on the loan is 3% and the rate of appreciation on the home in the first year of the loan is 10%. Assuming end- of-year annual loan payments, and ignoring transaction costs, what is the investor's rate of return if she sells this home at the end of year one? O + infinity O 8.1% O 7% 0 7.3% O 73% Based on a review of their financing objectives, you have already determined that a plain vanilla interest rate swap will work for the following two parties: Best rate available ABC Co. XYZ Co. Fixed-rate 10.5% 11.5% Floating rate LIBOR - 4% LIBOR -1% Assuming that you're correct in your determination that a swap will work, what are the total profits to be divided between the two firms (ABC and XYZ)? Assume no transaction costs. Less than 1% O 4% Over 4% 3% 2%