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Assume that you have entered into a swap agreement for a notional of 100M USD under which every 6 months you agree to pay LIBOR
Assume that you have entered into a swap agreement for a notional of 100M USD under which every 6 months you agree to pay LIBOR and receive 4% fixed. On the date you signed the contract LIBOR is 3%. Six months later LIBOR is 3.5%. Your actual payment net of what you receive at the first payment date equals to (negative sign means you receive) A)0 USD. B)-0.5 USD. C)0.5 USD D)-0.25 USD
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