9.

3.4 points Save Answer Question Panola Comapny issued $1 million of 2-year, 10% fixed rate notes payable to Collin Bank on January 1, 2021. Panola entered into an 2-year interest rate swap agreement on January 1, 2021 and designated the swap as a hedge against changes in the fair value of the note (due to possible cahnges in the market interest rate). The swap calls for Panola to receive payment from the Intermediary based on a 10% fixed interest rate on a notional (principal) amount of $1 million and to make payment based on a floating interest rate tied to changes in general rates (LIBOR). Cash settlement of the net interest amount is made annually at December 31 of each year. The floating (market) settlement rates was 7.8% at at December 31, 2021. The net settlement on the swap on December 31, 2021 was: Pesola pass 573,000 Panolar $22.000 Panolar $78,000 Panola pays $22.000 3.4 points Save Answer Question Panola Comapny issued $1 million of 2-year, 10% fixed rate notes payable to Collin Bank on January 1, 2021. Panola entered into an 2-year interest rate swap agreement on January 1, 2021 and designated the swap as a hedge against changes in the fair value of the note (due to possible cahnges in the market interest rate). The swap calls for Panola to receive payment from the Intermediary based on a 10% fixed interest rate on a notional (principal) amount of $1 million and to make payment based on a floating interest rate tied to changes in general rates (LIBOR). Cash settlement of the net interest amount is made annually at December 31 of each year. The floating (market) settlement rates was 7.8% at at December 31, 2021. The net settlement on the swap on December 31, 2021 was: Pesola pass 573,000 Panolar $22.000 Panolar $78,000 Panola pays $22.000