Question: Firm X agrees to pay Libor .15% in return for receiving 9.9% on notional principal of $10 million. What is the Firm X's net

Firm X agrees to pay Libor .15% in return for receiving 9.9%

Firm X agrees to pay Libor .15% in return for receiving 9.9% on notional principal of $10 million. What is the Firm X's net cash payment if Libor = 10%? How much does Firm X receive? A. $50,000 B. $5,000 C. -$5,000 D. $985,000 E. -$985,000 20% 20% A.

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