Question: 1. Apple Corp. has a floating-rate liability and wants a fixed-rate exposure. They enter in to a 2-year quarterlypay $4 million fixed-for-floating swap as the

1. Apple Corp. has a floating-rate liability and wants a fixed-rate exposure. They enter in to a 2-year quarterlypay $4 million fixed-for-floating swap as the fixed-rate payer. The counterparty is Pineapple Corp. The floating rate is 90 -day LIBOR +1%. Assume 360 days per year. Realization of 90 -day LIBOR's is: (a) If the first swap payment is zero, what is the fixed-rate specified in this swap? (b) After 1.25 years, what is the profit Apple Corp. has earned from this swap contract

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