How much will abc pay in interest to barclays over six-month

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Question 1: ABC International can borrow $4,000,000 at LIBOR plus a lending margin of .65 percent per annum on a three-month rollover basis from Barclays in London. Three month LIBOR is currently 5.5 percent. Suppose that over the second three-month interval LIBOR falls to 5.0 percent. How much will ABC pay in Interest to Barclays over the six-month period for the Eurodollar Loan?

Reference no: EM132928819

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