Question: A borrower has a three-year interest floating rate for a loan with a notional principal amount of $115,053 from a lender. The current term structure

A borrower has a three-year interest floating rate for a loan with a notional principal amount of $115,053 from a lender. The current term structure is as follows: s0(1) = 7.55%, s0(2) = 8.14% and s0(3) = 11.45%. The borrower wishes to swap the floating rate interest for a fixed rate of interest for the three-year period. Find the level payments corresponding to this swap.

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