On March 20, Microsoft agrees to a swap with a notional principal of $100M. Payments are exchanged every 6 months. Microsoft agrees to pay an interest rate of 5% per annum with semiannual compounding and receives LIBOR. Payments are made in arrears. On March 20 the 6 month LIBOR is 4.6% with semiannual compounding. On September 20, what is Microsoft's net cash flow?

Answer rating: 100% (QA)

To calculate Microsofts net cash flow on September 20 we need to determine the interest payments exc... View the full answer