Question: 8 . 2 Suppose that for the situation in Exercise 8 . 1 , at the start of the second year, the term structure is

8.2 Suppose that for the situation in Exercise 8.1, at the start of the second year, the term structure is (i) Find the net swap payment made at the end of the second year in each of part (a), assuming a notional amount of \(\$ 1,000,000\)..(ii) Find the market value of the swap to the payer at the start of the second year in each of (a),(b) and (c).
8 . 2 Suppose that for the situation in Exercise

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