Multiple Choice $20$ points

Suppose the principal $100.$ The value of the floating rate bond underlying the swap is $100.$ The value of the fixed rate bond is $\frac{3}{1\mathrm{.}02}\frac{3}{1\mathrm{.}03}2\frac{103}{1\mathrm{.}04}3=97\mathrm{.}34.$ The value of the swap is therefore $100-97\mathrm{.}34=2\mathrm{.}66$ or $2\mathrm{.}66\%$ of the principal

Which of the following is a typical bid$-$offer spread on the swap rate for a plain vanilla interest rate swap?

$3$ basis points

$8$ basis points

$13$ basis points

$18$ basis points