please answer these ten multiple choice in the attachment.

i need it in 12 hours

Reference materials: SWAPS 1. 2. 3. 4. 5. 6. A company can invest funds for five years at LIBOR minus 30 BP. The five year swap rate is 3%. What fixed rate of interest can the company earn by using the swap? a. 2.4% b. 2.7% c. 3.0% d. 3.3% e. 4.0% Which of the following is true? a. Principals are not usually exchanged in a currency swap. b. The principal amounts usually flow in the opposite direction to interest payments at the beginning of a currency swap and in the same direction as interest payments at the end of the swap. c. The principal amounts usually flow in the same direction as interest payments at the beginning of a currency swap and in the opposite direction to interest payment at the end of the swap. d. Principals are not usually specified in a currency swap. A plain vanilla interest rate swap is an agreement to exchange a series of periodic payments, one computed at a fixed rate and the other at: a. A floating rate indexed to a money market rate in the same currency (i.e. LIBOR) b. A floating rate linked to the return on any financial index (i.e. an equity index) c. A floating rate indexed to a money market rate in the same or a different currency. d. A floating rate indexed to a commodity (i.e. gold) price. The US swap market convention, that is used to compute the fixed payments in a USD swap is: a. Actual/365 b. Actual/360 c. Actual/Actual d. 30/360 e. None of the above You can borrow fixed at 8% and floating at LIBOR plus 1%. You can also enter into a fixed for LIBOR swap where the fixed rate is 7.5% (and the swap has the same maturity as the borrowing). What is the cheapest way for the firm to obtain fixed rate financing? a. Borrow at the fixed rate. b. Borrow at the fixed rate and then swap into floating using the swap. c. Borrow floating rate and then swap into fixed using the swap. d. Both a and b e. None of the above. You enter into a $100 million notional swap to pay six month LIBOR and receive 8%. Payment dates are semiannual on both legs. The last payment date was March 25 th and the next payment date is September 25th. Floating payments are based on the USD money market convention, and fixed payments are based on the convention of the correct answer for number 4. If the floating rate was reset to 6% on March 25th, what is the net amount you will receive on September 25 th? a. $933,333 b. $966,667 c. $1,000,000 d. $1,066,667 e. $1, 0333,333 7. You have the view that rates will be rising over time. What is the best kind of swap to exploit this view from amount the following alternatives? a. Pay fixed, receive floating. b. Pay floating, receive fixed. c. A maturity mismatch basis swap in which you pay floating indexed to three month LIBOR and receive fixed indexed to six month LIBOR. d. Pay fixed; receive floating on a reverse amortization swap. e. None of the above. 8. Which of the following describes an interest rate swap? a. A way of converting a liability from fixed to floating. b. A portfolio of forward agreements. c. An agreement to exchange interest at a fixed rate for interest on a floating rate. d. All of the above. e. Only A and B. 9. Since the 2008 Credit Crisis, a. LIBOR has replaced OIS as the discount rate for non-collateralized swaps. b. OIS has replaced LIBOR as the discount rate, but only for non-collateralized swaps. c. LIBOR has replaced OIS as the discount rate for collateralized swaps. d. OIS has replaced LIBOR as the discount rate for swaps. e. None of the above. 10. Which of the following is a typical bid offer spread on the swap rate for a plain vanilla interest rate swap? a. 3 BP b. 8 BP c. 13 BP d. 18 BP e. 25 BP