Problem 3 Corp. A borrows 100,000 from Corp. B on June 1, 2018. Corp. A will pay annual interest to Corp. B on June 1, 2019 and June 1, 2020 at a variable interest rate. Corp. A enters into an interest rate swap with Corp. C on June 1, 2018, under which it will pay Corp. C interest at a level swap rate, and Corp. C will pay Corp. A interest at the variable interest rate. The spot rates on June 1, 2018 are 5% for a one-year term and 5.75% for a two-year term. The spot rates are the same on June 1, 2019. What is the market value of the swap contract for Corp. A on June 1, 2019, just after the interest payments due on that date have been made? Problem 3 Corp. A borrows 100,000 from Corp. B on June 1, 2018. Corp. A will pay annual interest to Corp. B on June 1, 2019 and June 1, 2020 at a variable interest rate. Corp. A enters into an interest rate swap with Corp. C on June 1, 2018, under which it will pay Corp. C interest at a level swap rate, and Corp. C will pay Corp. A interest at the variable interest rate. The spot rates on June 1, 2018 are 5% for a one-year term and 5.75% for a two-year term. The spot rates are the same on June 1, 2019. What is the market value of the swap contract for Corp. A on June 1, 2019, just after the interest payments due on that date have been made