Answer the below questions.
(a) Assume that the swap rate for an interest-rate swap is 7% and that the fixed-rate swap payments are made quarterly on an actual / 360 basis. If the notional amount of a two-year swap is $20 million, what is the fixed-rate payment at the end of each quarter assuming the following number of days in each quarter?
(b) Assume that the swap in part (a) requires payments semiannually rather than quarterly. What is the semiannual fixed-rate payment?
(c) Suppose that the notional amount for the two-year swap is not the same in both years. Suppose instead that in year 1 the notional amount is $20 million, but in year 2 the notional amount is $12 million. What is the fixed-rate payment every six months?