Question: please explain steps. no excel work please Suppose that a commoditys forward prices for 1 year, 2 years, and 3 years are $95, $101, and

please explain steps. no excel work please

Suppose that a commoditys forward prices for 1 year, 2 years, and 3 years are $95, $101, and $107, respectively. The 1-year effective annual interest rate is 3.5%, the 2-year interest rate is 4.3%, and the 3-year interest rate is 4.6%. What is the 3-year swap price?

Selected Answer:	b. $278.13
Answers:	a. $113.80
	b. $278.13
	c. $100.80
	d. $92.71
	e. $103.22

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