An instant ago, you agreed to pay $950/oz in a 2 year swap of 100 oz. platinum with annual payments. Now the 1 and 2 year forward platinum prices are $900 and $950/oz., respectively, while the 1 and 2 year spot (zero coupon) interest rates are 4% and 4.5%, respectively. Determine the new swap price/oz. and the swap’s $ value. Show your work and be accurate to 3 decimal places. All rates are annual with annual compounding.

Answer rating: 100% (QA)

Pays 950 Per oz in 2 yrs of 100 oz first year Platinum Price 900 4... View the full answer