ompanies A and B enter into a plain vanilla swap agreement on March 15, 2019...
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ompanies A and B enter into a plain vanilla swap agreement on March 15, 2019 with interest paid every 3 months. The swap agreement is for 6 years. The notional principal is $200 million. As per the terms of the swap agreement, A would pay B a fixed rate of 4% per annum. B would pay A the 3 month LIBOR rate. Assume that the LIBOR rates on March 15, 2019 and June 15, 2019 are 3.8% and 4.1%, respectively. What is the net cash flow, to company A, on June 15, 2019?
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