1. Consider the following interest rate swap scenario: nototional = $10 MM, actual days in quarter = 92, annualized floating rate =2.5400%, and annualized fixed rate = 2.5400%. What is the floating leg payment?
a) $62,088.89 b) $65,0911.89 c) $64,911.11 d) $127,000
2. Let B be the benefit, Ck be the capital cost and Cr be the recurring cost. Cost/benefit analysis can use which of following formulae?
(a) B / (Ck + Cr)
(b) (B + Cr) / Ck.
(c) Either so long as you remember that B / (Ck + Cr) < (B + Cr) / Ck
(d) Either so long as you remember that B / (Ck + Cr) > (B + Cr) / Ck.