Question: 12. LIBOR Deposit FV and Effective Rate. Microsoft has excess cash of USD 2 billion that it uses to make a 90-day Eurodollar deposit. Assume

12. LIBOR Deposit FV and Effective Rate. Microsoft has excess cash

12. LIBOR Deposit FV and Effective Rate. Microsoft has excess cash of USD 2 billion that it uses to make a 90-day Eurodollar deposit. Assume that 90-day LIBOR equals 4.2 per- cent (actual/360 convention). How much interest does Microsoft earn? What is FV? What is the effective annual return

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