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SPG is a US MNC that has operations in Europe, the Middle East, and Africa. It has identified needs of leverage of USD24 million in
SPG is a US MNC that has operations in Europe, the Middle East, and Africa. It has identified needs of leverage of USD24 million in 7 months for a six-month period. To lock in the rate on this loan, SPG sells a forward rate agreement on LIBOR6 at 5.839% to HSBC for a notional principal of USD255 million. In 7 months' time, LIBOR6 is 4.173%. How much will SPG pay to HSBC assuming 360 days in a year? O a. USD6.47724 million O b. USD6.79158 million O c. USD7.48811 million O d. USD5.10065 million Oe. None of the options in this question are correct.
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