Question: If you have three years left on a five-year fixed rate loan paying 2 percent quarterly, and you want to transform it into a floating

If you have three years left on a five-year fixed rate loan paying 2 percent quarterly, and you want to transform it into a floating rate loan using a swap, which of the following would be an appropriate method?

Enter a three-year receive fixed, and pay a floating swap where the swap rate is 2 percent paid quarterly.

Enter a four-year receive fixed, and pay a floating swap where the swap rate is 2 percent paid quarterly

Enter a three-year receive floating, and pay a fixed swap where the swap rate is 2 percent paid quarterly.

Enter a five-year receive floating, and pay a fixed swap where the swap rate is 2 percent paid quarterly.

Enter a five-year receive fixed, and pay a floating swap where the swap rate is 2 percent paid quarterly.

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