Solution:
The role of the National Bank is an interest rate swap trader. This works for LC Inc. and Halogen as an agent. Through earning 10 percentage points over a study number, or $200,000 per year, National Bank will be paid for their participation.
National Bank Compensation:
Receives 3.1% Fixed
Pays 3% Fixed
Receives 6-Month LIBOR
Pays 6-Month LIBOR
Net Compensation 0.1%
