Скачать или смотреть SOA/FM SAMPLE QUESTION

200.
SOA Farms has a 500,000 loan from Bailey Bank. Under the terms of the loan, SOA will pay interest annually to Bailey Bank based on LIBOR plus 120 basis points. Additionally, SOA will pay the principal of 500,000 at the end of five years.
SOA would prefer to know the annual interest cost that will be incurred. To fix the interest rate on the loan, SOA enters into a five-year interest rate swap with a notional amount of 500,000 and annual settlement dates. The terms of the swap are that SOA will make swap payments based on a fixed rate of 5.35% and will receive swap payments based on a variable rate of LIBOR plus 50 basis points.
During the third year of the loan, LIBOR is 5.6%.
Calculate the net interest payment made by SOA at the end of the third year.
A. 26,750
B. 29,250
C. 30,250
D. 31,500
E. 34,000