Question: Consider a vanilla interest rate swap based on 180-day LIBOR with a notional of $10 million and fixed payments of 4%. The 180-day floating rate

Consider a vanilla interest rate swap based on 180-day LIBOR with a notional of $10 million and fixed payments of 4%. The 180-day floating rate at the last settlement date is 1.18%. Determine the current payment for the party paying fixed and receiving floating.

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