Question: Given a 6 year fixed for float interest rate swap on 1,200,000 notional principle with annual resets, company x pays a 6% annual fixed rate

Given a 6 year fixed for float interest rate swap on 1,200,000 notional principle with annual resets, company x pays a 6% annual fixed rate compounded annually. Company y receives fixed. If the floating rate observed at 5% annual rate compounded annually, what are the equations for the cash flow lines of each company?

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To calculate the cash flow lines for Company X and Company Y in a 6year fixedforfloat interest rate swap we need to consider the fixed and floating pa... View full answer

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