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Firms A and B have entered into an interest rate swap. On the first payment date, Firm A owes Firm B 12 percent of $10
Firms A and B have entered into an interest rate swap. On the first payment date, Firm A owes Firm B 12 percent of $10 million, and Firm B owes Firm A 14 percent of $10 million. Most likely, this transaction will be settled in what manner?
a. | Firm A will send Firm B $120,000 and Firm B will send Firm A $140,000 |
b. | Firm B will send Firm A $120,000 and Firm A will send Firm B $140,000 |
c. | Firm A will send Firm B $20,000 |
d. | Firm B will send Firm A $20,000 |
e. | none of the above |
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