Question

A company borrowed $300 million from a bank for two years at 3-month LIBOR+1.5%, beginning December 3, paid quarterly. The amortization schedule for the loan is $50 million every six months. Fill in the table below using the given LIBOR assumptions, taking proper care of day counts. Some of the dates fall on weekends – you’ll need to adjust for that.

              date                 3-mo LIBOR           interest rate                 interest payment          total payment

              Dec 3                    2%    

              March 3 2020       2.5%                                             

              June 3                    2.75%                          

              Sept 3                    3.05%

              Dec 3                    3.15%

              March 3 2021       3.3%

              June 3                    3.33%                                 

              Sept 3                    3.25%

              Dec 3

*note: this is how the hw problem was given. You don't need the last month.  

Answer 1

Date	loan	libor	interst rate		interest payment	loan repayment	TOTAL
Tuesday, December 03, 2019	300
Tuesday, March 03, 2020	300	2	3.5		10.5		10.5
Wednesday, June 03, 2020	300	2.5	4		12	50	62
Thursday, September 03, 2020	250	2.75	4.25		10.625		10.625
Thursday, December 03, 2020	250	3.05	4.55		11.375	50	61.375
Wednesday, March 03, 2021	200	3.15	4.65		9.3		9.3
Thursday, June 03, 2021	200	3.33	4.83		9.66	50	59.66
Friday, September 03, 2021	150	3.25	4.75		7.125		7.125