1st January X8: Company AB borrows £100,000 under a 5 year bank loan linked to 6-month LIBOR plus 50 basis points,
1st January X8 5 year semi-annual fixed rate swap rate is 6% against 6-months LIBOR
Outturn 6-month LIBOR rates were as follows:
1st January X8 5.0% 1st July X8 5.5% - 1st January X9 6.1%
For company AB. the interest rate exposure on the unhedged bank loan is:
Select one of the following: