Golden Corporation invests in a 4.8% interest rate cap to hedge $3,500,000 in variable rate debt, whose rate is set at LIBOR plus 20 bp. For the 6-month period ending December 31, 2016, LIBOR is 5%. For this same period, the cap's market value increases by $5,500.

How much does Golden receive in cash to settle the cap for the 6-month period ending December 31, 2016?

Answer rating: 100% (QA)

Calculation of cash to be received to settle cap fo... View the full answer