Suppose that florida bank has recently granted a loan of $2 million to oyster farms at libor plus 0.5 percent for six months. in return for granting oyster farms an interest-rate cap of 6.5 percent on its loan, this bank has received from this customer a floor rate on the loan of 5 percent. suppose that, as the loan is about to start, libor declines to 4.25 percent and remains there for the duration of the loan. how much (in dollars) will oyster farms have to pay in total interest on this six-month loan with floor and without floor? how much in interest rebates will oyster farms have to pay due to the fall in libor?

Owns a machine that can produce two specialized products. production time for product tlx is two units per hour and for product mtv is four units per hour. the machine’s capacity is 2,100 hours per year. both products are sold to a single customer who has agreed to buy all of the company’s output up to a maximum of 3,570 units of product tlx and 1,610 units of product mtv. selling prices and variable costs per unit to produce the products follow. product tlx product mtv selling price per unit $ 11.50 $ 6.90 variable costs per unit 3.45 4.14 determine the company's most profitable sales mix and the contribution margin that results from that sales mix.