Question: need to use both BOND METHOD AND FRA's method Thank you, also wasnt sure on coupon rate? Apple issued $1B of 5-year floating-rate LIBOR based

need to use both BOND METHOD AND FRA's method

Thank you, also wasnt sure on coupon rate? need to use both BOND METHOD AND FRA's method Thank you,

Apple issued $1B of 5-year floating-rate LIBOR based debt 12/31/2020 when LIBOR was 25%. The coupon is paid annually. On 12/31/2021, Apple treasury team think interest rate will continue to rise and stay high for the duration of the debt; they decided to enter into a swap trade with Morgan Stanley, where - Apple will pay MS a fixed 1% interest, annually - MS will pay Apple LIBOR, annually On 12/31/2022, the 1 y LIBOR rate on last payment date was 1.25%. The contract has 3 years remaining life. LIBOR rates for 1y,2y, and 3y are 1.5%,2%,2.5% Use both valuation method to calculate the value of this swap that will be reported on Apple's balance sheet

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