Question: Options A. 4.39% B. 4.46% C. 4.61% D. 4.85% E. 4.90% You are given the following spot rates: Time Spot Rate 1 3.0% 2 4.0%

Options A. 4.39% B. 4.46% C. 4.61% D. 4.85% E. 4.90% You Options

A. 4.39%

B. 4.46%

C. 4.61%

D. 4.85%

E. 4.90%

You are given the following spot rates: Time Spot Rate 1 3.0% 2 4.0% 3 4.5% 4 5.2% Sami borrows 2000 in year one, an additional 3000 in year 2, and an additional 1000 in year 3. Sami enters into a three-year interest rate swap where the floating rate resets annually. Determine the level swap rate R. You are given the following spot rates: Time Spot Rate 1 3.0% 2 4.0% 3 4.5% 4 5.2% Sami borrows 2000 in year one, an additional 3000 in year 2, and an additional 1000 in year 3. Sami enters into a three-year interest rate swap where the floating rate resets annually. Determine the level swap rate R

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