Multiple Choice
Teltrex International can borrow $3,000,000 at LIBOR plus a lending margin of .75 percent per annum on a three-month rollover basis from Barclays in London.Suppose that three-month LIBOR is currently 5 17/32 percent.Further suppose that over the second three-month interval LIBOR falls to 5 1/8 percent.How much will Teltrex pay in interest to Barclays over the six-month period for the Eurodollar loan?
A) $79,921.875
B) $91,171.88
C) $96,174.39
D) $364,687.52
Correct Answer:
Verified
Correct Answer:
Verified
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