Ali Company and Bill Company entered into a semi-annual pay plain vanilla interest rate swap with a nominal value of $8,000,000. Bill offered to pay Ali a fixed annual rate of 2.75% (with semi-annual compounding). The remaining life of the swap is nine months. Assume the six-month LIBOR rate observed three months ago was 2.6% with semi-annual compounding. Today's three and nine month LIBOR rates are 2.526% and 2.846% (with continuous compounding). The implied forward rate is 3.0287% with semi-annual compounding. What is the value of the swap to Bill Company using the FRA methodology? Do not round intermediate calculations.

A.$4,950

B.$2,009

C.-$1,407

D.$5,613

Ali Company and Bill Company entered into a semi-annual pay plain vanilla interest rate swap with a nominal value of $8,000,000. Bill offered to pay Ali a fixed annual rate of 2.75% (with semi-annual compounding). The remaining life of the swap is nine months. Assume the six-month LIBOR rate observed three months ago was 2.6% with semi-annual compounding. Today's three and nine month LIBOR rates are 2.526% and 2.846% (with continuous compounding). The implied forward rate is 3.0287% with semi-annual compounding. What is the present value of the net cash flow (or payoff) at nine months point to Bill Company?

A.$4,556

B.$4,913

C.$8,904

D.$10,913

Memphis ences Daily AV Cale III Quiz # 4 Applications of Partial Derivatives "vel surface F(x, v.2) = ]x 2 + y'?'=4 goes through the point P late the gradient of F at No equations for the plane tangent to the surface and the line norm ent Plane: al Line: ler the bivariate function /(x y) = x - 3x+ y -4v+12. ate the derivative of / in the direction of u = (; at x I critical points for f, and use the second derivative tePaleontology A. Is primarily an experimental science, much like physics and chemistry, but one that involves organisms. B Encourages paleontologists to document historical patterns and investigate the process of evolution. C. Relies fundamentally on both biology and geology, as well as chemistry, physics, and mathematics, D. B and C only. Regarding rocks: A. Depositional sedimentary processes generate a sedimentary record; erosion can remove that record. B. Sedimentary rocks are more likely to preserve fossils because they are older than igneous rocks C. The three major types of rocks are igneous, phosphatic, and sedimentary. D. None of the above Which of the following is true regarding biases in the fossil record? A. Organisms with mineralized shells are less likely to be preserved than those without shells. B. Most organisms that have ever lived are preserved as fossils. C. Abundant organisms, like snails, are more likely to be preserved than are rare organisms, like peregrine falcons D. A and C only. Individuals and morphometrics A Descriptions of fossils can take the form of words, pictures, or measurements. H. Morphometric methods can be used to characterize a single individual, or compare two individuals. C. Bivariate morphometrics compares two features, like length and width, D. All of the above. Allometry and isometry: A After taking the logarithmic transform of the allometric equation (Y = bX"), a = slope of the line that results, B. Heat loss, dependent on surface area per volume, scales isometrically in most organisms. C. Most organisms grow isometrically as they increase in size, D. A and B only Species: A Cladogenesis is a mode of speciation in the fossil record that can be thought of as a cline in time. B. Even using a biological species concept, most species are actually recognized on the basis of morphology C. Behavioral isolation is the most common isolating mechanism to enable speciation to occur D. None of the above