Question
ABC International can borrow $4,000,000 at LIBOR plus a lending margin of 0.65 percent per annum on a three-month rollover basis from Barclays in London.
ABC International can borrow $4,000,000 at LIBOR plus a lending margin of 0.65 percent per annum on a three-month rollover basis from Barclays in London. Three month LIBOR is currently 5.5 percent. Suppose that over the second three-month interval LIBOR falls to 5.0 percent. How much will ABC pay in interest to Barclays over the six-month period for the Eurodollar loan?
Multiple Choice
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$50,000
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$100,000
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$118,000
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$120,000
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Financial Regulation In The Global Economy
Authors: Richard J. Herring , Robert E. Litan
1st Edition
0815791550, 9780815752837, 9780815791553
