Consider a swap with fixed rate K and payment frequency which starts at T0 and ends at Tn

Consider a swap with xed rate K and payment frequency 0: which starts at TD and ends at Tn. a) Express the value of the swap Vfgw) in terms of zero coupon bond prices only. The parameters K and o: as well as the times To, . . . ,T, should also appear in your nal answer. b) Using your answer from part (a), show that for a given K, Vigw (t) is bolmded. That is, nd nite f3 and a independent of interest rates such that E g Vfgw) g a. For t 2 T0 = D (a spot-starting swap), TN 2 n and frequency 0: = 1, nd bounds in terms of n and K. c) Is the value of a forward contract on a stock 8; necessarily bounded above and below? Explain the key difference between the value of a swap and a stock forward contract. You may assume that the stock pays no income