You enter into a $100 million notional swap to pay six-month Libor and receive 8%. Payment dates are semi-annual on both legs. The last payment date was March 25 and the next payment date is September 25. Floating payments are based on the USD money-market convention, and fixed payments are based on the 30/360 convention. If the net payment you will receive on September 25 is zero, what must have been the Libor reset on march 25?
A) 6%.
B) Higher than 6%.
C) Lower than 6%.
D) Cannot be calculated from the given information.

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The Answer of You enter into a $100 million notional swap to pay six-month Libor and receive 8%. Payment dates are semi-annual on both legs. The last payment date was March 25 and the next payment date is September 25. Floating payments are based on the USD money-market convention, and fixed payments are based on the 30/360 convention. If the net payment you will receive on September 25 is zero, what must have been the Libor reset on march 25?
A) 6%.
B) Higher than 6%.
C) Lower than 6%.
D) Cannot be calculated from the given information.

You Enter into a $100 Million Notional Swap to Pay