SUGGESTED ANSWERS AND SOLUTIONS TO

To execute this swap, she would enter into a two-year term, semi-annual settle,$1,000,000 nominal principal, pay fixed-receive floating U.S. dollar LIBOR swap. If rates rise, the swap’s mark-to-market value will increase because the U.S. dollar LIBOR Ferris receives will be higher than the LIBOR rates from which the swap was priced. ................
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