We are Wednesday 26 October 2022 and your bank in London borrows from another bank in London USD 100 million for three months in the interbank Eurodollar market. This is a spot transaction in USD, settlement is in (t + 2), the day count convention is ACT/360, and the business day convention is "Modified Following". 

How much interest does your bank pay on this loan at the end of the transaction if the interest rate which you negotiated is 2.750%. Report the amount rounded to the nearest dollar.

Answer rating: 100% (QA)

Interest where P is the principal amount USD 100 million r i... View the full answer