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PayPal Holdings, Inc. enters into an interest rate swap agreement to hedge against interest rate fluctuations. The notional principal amount of the swap is $50,000,000.
PayPal Holdings, Inc. enters into an interest rate swap agreement to hedge against interest rate fluctuations. The notional principal amount of the swap is $50,000,000. Calculate the annual interest payments if the fixed interest rate is 4% and the floating rate is LIBOR + 0.5%.
Description | Amount |
Notional Principal Amount | $50,000,000 |
Fixed Interest Rate | 4% |
Floating Rate | LIBOR + 0.5% |
Annual Interest Payments |
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