Given the following interest-rate swap:
- Fixed-rate payer pays half of the YTM on a T-note of \(3.0 \%\)
- Floating-rate payer pays the LIBOR - Notional principal is \(\$ 10\) million - Effective dates are 3/23 and 9/23 for the next three years
Questions:

a. Determine the net receipts of the fixed-rate payer given the following LIBORs:
- \(3 / 23 / \mathrm{y} 1.020\)
- \(9 / 23 / \mathrm{y} 1.025\)
- \(3 / 23 / \mathrm{y} 2.030\)

- \(9 / 23 / \mathrm{y} 2.035\)
- \(3 / 23 / \mathrm{y} 3.040\)
- \(9 / 23 / \mathrm{y} 3.045\)

b. Show in a table how a company with a three-year, \(\$ 10\) million floating-rate loan, with the rate set by the LIBOR on the dates coinciding with the swap, could make the loan a fixed-rate one by taking a position in the swap. What would be the fixed rate?

c. Show in a table how a company with a two-year, \(\$ 10\) million fixed-rate loan at \(3.0 \%\), could make the loan a floating-rate one by taking a position in the swap.