Assume that libor is at 9 percent on march 4 1999 875


XYZ Corporation takes out a $1 million loan that semiannually pays six-month LIBOR 50 bp on March 4, 1999. Assume that LIBOR is at 9 percent on March 4, 1999, 8.75 percent on September 4, 1999, and 9.125 percent on March 4, 2000. What are the first three interest payments on the loan? When are they paid?

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Finance Basics: Assume that libor is at 9 percent on march 4 1999 875
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