Consider the following plain-vanilla swap. Party A pays a fixed rate 8.29% per annum on a semiannual basis (180/360), and receives from Party B LIBOR + 30basis point. The current six- month LIBOR rate is 7.35% per annum. The notional principal is $25M. What is the net swap payment of Party A? a. $20,000.00 b. $40,000.00 c. $80,000.00 d. $110,000.00

Lucy Lampkin wants to purchase a bond with a face value of $7,000 and a bond rate of 7.5 percent per year, payable at 3.75 percent semiannually. The bond has a remaining life of 5 years. If Lucy wants to earn at least 9.5 percent per year compounded semiannually, what is the maximum price she would be willing to pay to purchase the bond? $ Carry all interim calculations to 5 decimal places and then round your final answer to the nearest dollar. The tolerance is +5.

A payment stream consists of three payments: $1,900 due today, $2,400 due 80 days from today, and $2,900 due 180 days from today. What single payment, 70 days from today, is economically equivalent to the payment stream if money can be invested at a rate of 4.4%? (Use 365 days a year. Do not round intermediate calculations and round your final answer to 2 decimal places.) Single payment $

A bank agrees a repurchase agreement (Repo) with its prime broker using £30 million of Mortgage Backed Securities as collateral for a period of 50 days. The prime broker levies a haircut of 10 per cent and charges an annual Repo rate of 4.5 per cent. What is the price at which the bank will repurchase the £30 million MBS at the end of 50 days when the Repo rate interest applies only on the sum of money being lent by the prime broker ? Use a 360 day-count.