A company is planning to use a year swap contract to exchange variable rate payments for

fixed rate payments on a $ million loan.

Current t interest rates are as follows: r r r

a Solve for the year swap rate.

b Value the swap contract at time if after year, interest rates have not changed, that is

forward interest rates are as follows:

r r

rr

Answer rating: 100% (QA)

Answer Lets tackle this step by step a Solve for the 3year swap rate The 3year swap rate S can be ca... View the full answer