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Your firm enters into a swap agreement with a notional principle of S50 million where the firm pays a fixed rate of interest of 5%

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Your firm enters into a swap agreement with a notional principle of S50 million where the firm pays a fixed rate of interest of 5% and receives a variable rate of interest equal 44. to LIBOR plus 200 basis points. If LIBOR is currently 3.25% the NET amount your firm will receive (+) or pay (-) on the next transaction date is A) -$2,500,000 B) $2,625,000 C) $125,000 D) -S125,000 E) -$875,000 Could you please erolain me sero h aep Thank ya, so muon Answer: C Page: 309 Level: Difficult Rationale: (( 3.25%+2%)-5%)"$50 million

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