Question: Consider a plain vanilla interest-rate swap with an effective date of January 1 of year 1, notional amount of $100 million and quarterly payments.

Consider a plain vanilla interest-rate swap with an effective date of January

Consider a plain vanilla interest-rate swap with an effective date of January 1 of year 1, notional amount of $100 million and quarterly payments. What is the fixed-rate payment in the second quarter if the swap rate is 35%?

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