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Interest Rate Swap debt with interest payments due every six months. Concurrently, Marshall enters into an interest rate swap in which it receives 3 percent

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Interest Rate Swap debt with interest payments due every six months. Concurrently, Marshall enters into an interest rate swap in which it receives 3 percent fixed and pays variable at average LIBOR + 60 bp on a notional amount of $10,000,000.On June 30, 2020, LIBOR averaged 1.7 percent during the six-month period. The estimated fair value of the swap to Marshall increased $225,000 on June 30,2020, and the fair value of the debt is $10,225,000. E9.16 On January 1,2020, Marshall Corp. issues $10,000,000 in 3 percent fixed rate LO 3 Required a. Prepare the journal entries made by Marshall on January 1 and June 30 in connection with the debt issuance, the periodic interest, and value changes in the swap and debt. Did market interest rates increase or decrease during this period? How do you know? Suppose instead that Marshall issued variable rate debt and entered a swap in which it receives w able and pays fixed. If the market rate of interest on its variable rate debt declines, does Marshall recognize a gain or loss on the swap and what is its accounting treatment? b. ari- Interest Rate Swap debt with interest payments due every six months. Concurrently, Marshall enters into an interest rate swap in which it receives 3 percent fixed and pays variable at average LIBOR + 60 bp on a notional amount of $10,000,000.On June 30, 2020, LIBOR averaged 1.7 percent during the six-month period. The estimated fair value of the swap to Marshall increased $225,000 on June 30,2020, and the fair value of the debt is $10,225,000. E9.16 On January 1,2020, Marshall Corp. issues $10,000,000 in 3 percent fixed rate LO 3 Required a. Prepare the journal entries made by Marshall on January 1 and June 30 in connection with the debt issuance, the periodic interest, and value changes in the swap and debt. Did market interest rates increase or decrease during this period? How do you know? Suppose instead that Marshall issued variable rate debt and entered a swap in which it receives w able and pays fixed. If the market rate of interest on its variable rate debt declines, does Marshall recognize a gain or loss on the swap and what is its accounting treatment? b. ari

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