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Sunny Corporation has $ 1 , 0 0 0 , 0 0 0 in fixed rate debt, with an annual interest rate of 3 %
Sunny Corporation has $ in fixed rate debt, with an annual interest rate of and interest payments due June and December of each year. On January it entered a receive fixedpay variable interest rate swap, where the variable rate is LIBOR plus bp On January LIBOR is On June LIBOR declines to and causes the variable rate to be reset at that time. The swap qualifies for hedge accounting.
Suppose the swap contract changed in value by $ as of June How does Sunny record this change in value?
Gain reported in income
Loss reported in income
Loss reported in OCI
Not recorded
Sunny Corporation has $ in fixed rate debt, with an annual interest rate of and interest payments due June and December of each year. On January it entered a receive fixedpay variable interest rate swap, where the variable rate is LIBOR plus bp On January LIBOR is On June LIBOR declines to and causes the variable rate to be reset at that time. The swap qualifies for hedge accounting.
Suppose the fixed rate debt changed in value by $ as of June How does Sunny record this change in value?
Gain reported in income
Loss reported in income
Loss reported in OCI
Not recorded
Sunny Corporation has $ in fixed rate debt, with an annual interest rate of and interest payments due June and December of each year. On January it entered a receive fixedpay variable interest rate swap, where the variable rate is LIBOR plus bp On January LIBOR is On June LIBOR declines to and causes the variable rate to be reset at that time. The swap qualifies for hedge accounting.
Suppose the same facts as above, except Sunny Corporation has variable rate debt, with interest payments at LIBOR plus bp and enters a receive variablepay fixed interest rate swap, with the annual fixed rate set at The swap changed in value by $ as of June How does Sunny record this change in value?
Gain reported in income
Loss reported in income
Loss reported in OCI
Not recorded
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