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Financial Risk Manager Part 1

Financial Risk Manager Part 1

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Savers Bancorp entered into a 2-year interest rate swap agreement starting on August 9, 2014. In this swap, they received a fixed rate of 4.00% per annum and paid a variable rate of LIBOR plus 1.20%. The notional principal of the swap was USD 6.5 million, with payments exchanged semi-annually. What was the total amount received by Savers Bancorp on August 9, 2016, based on the 6-month LIBOR rates provided for the 2-year period?

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