Question: Suppose that commodity's forward prices for 1 year, 2 years, and 3 yesrs are $81,592, and 5100 . The 1 year effective annual interest rate

Suppose that commodity's forward prices for 1 year, 2 years, and 3 yesrs are $81,592, and 5100 . The 1 year effective annual interest rate is 3.836, the 2 year interest rate is 3.2%, and the 3 year interest rate is 2.8K. What is the price of a 2 year swap beginning in 1 year? (The first swap settlement wil be in 2 years and the second settlement in 3 years.) Selected Answer: Answers: a b. 572.14 a. 590.85 b. 572.14 c. 5178.43 d. 505,96 c. 58922

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