Floating rate bond outstanding

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Reference no: EM132034116

Bad Wolf Enterprises has a $100 million, 10 years to maturity, floating rate bond outstanding. The interest rate adjusts every June 15 and December 15 at the annual rate of Libor + 50 basis points. Bad Wolf Enterprises has entered into a swap agreement in which the company receives Libor + 30 basis points every June 15 and December 15 and pays 7.125 every June 15 and December 15 on a notional principal amount of $100 million.

The net interest payment Bad Wolf Enterprises must make June 15 is

Reference no: EM132034116

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