Question: a a = = Problem #15: A borrower has a three-year interest floating rate for a loan with a notion principal amount of $149741 from

a a = = Problem #15: A borrower has a three-year

a a = = Problem #15: A borrower has a three-year interest floating rate for a loan with a notion principal amount of $149741 from a [3 marks] lender. The current effective annual term structure is as follows: so(1) 2.32%, so(2) 6.7%, and so(3) = 9.07%. The borrower wishes to swap the floating rate interest for a fixed rate of interest for the three- year period. Find the fixed rate corresponding to this swap. (A) 9.12% (B) 8.86% (C) 8.6% (D) 8.99% (E) 8.73% Problem #15: Select Save

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