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

1. The student t test assumes the numerator of the t statistic is normally distributed. True. (False. 2. In ANOVA the ratio of the MStreatment /MSr, where 55 is the sum of squares error, is distributed as an F-distribution if the null hypothesis is true i.e. that all treatment effects are zero (all (/0). True, False. 3. For an experiment with 4 treatments (A, B, C, D) and no blocking SST = $5.+55,+55c+550+55. True. False. 4. The quantity MSI = $5:/dof for errors. True. False. 5. The degrees of freedom for $5, is N-1 where No(number of replication for each treatment) X (number of treatments) = na for "a" treatments with "n" replications for each treatment. True. False. 6. If experiment has a=4 treatments the degrees of freedom associated for treatments is 3? True. False. 7. For the above experiment the degrees of freedom for error when there are n replication of each of a treatments is calculated to be dof = doft - doftmatments = 4 (n-1). True. False.\fLet g (t) be the rectangular pulse shown below. The random process X (t) is defined as X(t) = Ag(t), where A is uniformly distributed between -1 and +1. 0 (1, if 0