Answer:
B. an interest rate paid on Eurodollar loans in the London market.
Explanation:
London InterBank Offered Rate (LIBOR)
This is simillar to the federal funds rate.
It is a rate at which banks offer fonds to other banks, thus "interbank", for short-term loans.
It is generallyaccepted to evaluate and compare interest rate and indicate the borrowing cost between banks.
<u> It is based on five currencies:</u>
- the US dollar
- the euro
- the British pound
- the Japanese yen
- and the Swiss franc
<u>Also, there are LIBOR for different maturities:</u>
- overnight,
- one week,
- one month,
- two months,
- three months,
- six months
- and a year.
Answer:
Semi annual interest payment = $6300
Explanation:
The interest payment of bond is calculated based on the coupon rate of the bond. The coupon rate is the interest rate carried by the bond. This rate can be different from the market interest rate and bond's yield to maturity. The interest payment is calculated by multiplying the coupon rate by the face value of the bond.
Annual interest payment = Coupon rate * Par value
For a semi annual bond, we calculate the interest payment in the same way as the annual bond. However, we just have to adjust the coupon rate for the semi annual period. We multiply the coupon rate by 6/12 as it is a semi annual payment.
Semi annual interest payment = Coupon rate * 6/12 * Par Value
Semi annual interest payment = 0.09 * 6/12 * 140000
Semi annual interest payment = $6300
Fails to supervise employees, has previously been suspended by another Administrator, has been convicted of a financial crime within the past 10 years, becomes insolvent.
Students should understand that every saving and investment product has different risks and returns. Differences include how readily investors can get their money when they need it, how fast their money will grow, and how safe their money will be.
