You are the seller of an interest rate swap with two remaining annual payments and a...

 

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You are the seller of an interest rate swap with two remaining annual payments and a notional principal of $100 million. The remaining floating-rate payments are estimated to be $3 million in one year and $5 million in two years. From this information, what can you say about the term structure of LIBOR interest rates? You are the seller of an interest rate swap with two remaining annual payments and a notional principal of $100 million. The remaining floating-rate payments are estimated to be $3 million in one year and $5 million in two years. From this information, what can you say about the term structure of LIBOR interest rates?