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Up4
Haspiess Systems, Inc. and
Signicomp Manufacturing enter into a netted interest rate swap, with a notional
$75M. Haspiess will pay a fixed 5%, and Signicomp will pay LIBOR + 75bp. LIBOR
is 3.5%. The first semiannual payment will be closest to:- Haspiess paying Signicomp $600,000
- Signicomp paying Haspiess $600,000
- Haspiess paying Signicomp $300,000
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Up1
The amount Haspiess owes is
0.5 * $75,000,000 * 5% = $1,875,000.The amount Signicomp owes is
0.5 * $75,000,000 * (3.5% + 0.75%) = $1,593,750.The net payment will be
Haspiess paying Signicomp $281,250.
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