Question: How should I solve this? Consider at date T_0, a 6-month LIBOR standard swap contract with maturity 6 years. Suppose that the swap nominal amount

How should I solve this? Consider at date T_0, a 6-month How should I solve this?

Consider at date T_0, a 6-month LIBOR standard swap contract with maturity 6 years. Suppose that the swap nominal amount is $1 million and the rate of the fixed leg is 6%. At date T_0, zero coupon-rates are as given in the table below: (a) What is the price formula for this plain vanilla swap? (b) Compute the discount factors corresponding to the zero-coupon rates in the table above. (c) Give the price of this swap (d) What is the swap rate such that the price of this swap is zero

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