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Tilapia Bass Shops of Tallahassee, Florida borrows $1,600,000 at LIBOR plus a lending margin of 1 percent per annum on a six- month rollover basis
Tilapia Bass Shops of Tallahassee, Florida borrows $1,600,000 at LIBOR plus a lending margin of 1 percent per annum on a six- month rollover basis from a London bank. If six-month LIBOR is 5 percent over the first six-month interval and 6 3/8 percent over the second six-month interval, how much will Tilapia Bass Shops pay in interest over the first year of its Eurodollar loan? $102,000 $105,000 $112,000 $107,000
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