Question
Barclays Investment Bank Ltd. quotes the following swap rates: 7.50 7.85 annually against six-month dollar LIBOR for dollars, and 11.00 percent11.30 percent annually against six-month
Barclays Investment Bank Ltd. quotes the following swap rates: 7.50 7.85 annually against six-month dollar LIBOR for dollars, and 11.00 percent11.30 percent annually against six-month dollar LIBOR for British pound sterling. Barclays would enter into a $/ currency swap in which: Multiple Choice Barclays would pay annual fixed-rate dollar payments of 7.5 percent in return for receiving annual fixed-rate payments at 11.3 percent, and it will receive annual fixed-rate dollar payments at 7.85 percent against paying annual fixed-rate payments at 11 percent. Barclays would pay annual fixed-rate dollar payments of 7.5 percent in return for receiving annual fixed-rate payments at 11.3 percent. Barclays will receive annual fixed-rate dollar payments at 7.85 percent against paying annual fixed-rate payments at 11 percent. none of the options
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