CIMA P3 Question Answer
SDF has a variable rate loan of $100 million on which it is paying interest of LIBOR + 2%.
SDF entered into a swap with CV bank to convert this to a fixed rate 7% loan. CV bank charges an annual commission of 0.3% for making this arrangement.
Calculate the net payment from SDF to CV bank at the end of the first year if LIBOR was 3% throughout the year.
Give your answer in $ million, to one decimal place.
CIMA P3 Summary
- Vendor: CIMA
- Product: P3
- Update on: Sep 17, 2025
- Questions: 339
