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Woland National Bank purchases a three-year interest rate for a fee of 2 percent of national principal valued at $50 milion, with an interest rate

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Woland National Bank purchases a three-year interest rate for a fee of 2 percent of national principal valued at $50 milion, with an interest rate Geling of 11 percent and LIBOR rengthen interest At the same time. Woland sells a three year for 8 percent for a fee of 2 percent of the $50 milion principal Assume that LIBOR expected to be percent, 13 percent, and 17 percent at the end of each of the next three years, special How much Woland received for palding Noweg? For example, if there cash flow is 2.5 milion dollars, type 25 in the box below

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