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 $600,000Signicomp paying Haspiess $600,000Haspiess paying Signicomp $300,000

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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  26 Sep 2018 at 7:43 am
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  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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