Show transcribed image text The multiplier for a futures contract on a certain stock market index is $250. The maturity of the contract is one year, the current level of the index is 2,000, and the risk-free interest rate is 0.5% per month. The dividend yield on the index is 0.4% per month. Suppose that after one month, the stock index is at 2,008. Find the cash flow from the mark-to-market proceeds on the contract. Assume that the parity condition always holds exactly. (Do not round intermediate calculations. Round your answer to 2 decimal places.) Find the holding-period return if the initial margin on the contract is $30,000. (Do not round intermediate calculations. Round your answer to 2 decimal places.) A corporation has issued a $22 million issue of floating-rate bonds on which it pays an interest rate 1.2% over the LIBOR rate. The bonds are selling at par value. The firm is worried that rates are about to rise, and it would like to lock in a fixed interest rate on its borrowings. The firm sees that dealers in the swap market are offering swaps of LIBOR for 6%. A swap arrangement converts the firm's borrowings to a synthetic fixed-rate loan. What interest rate will it pay on that synthetic fixed-rate loan? (Round your answer to 1 decimal place.)