$$The floating rate bond can be valued as though it produces a cash flow of $$105\mathrm{.}1$m in $3$ months.

$$The bond is worth the notional principal immediately after an interest payment because, at this time, the bond is a $$fair deal$$ where the borrower pays SOFR for each subsequent payment.

$$The value of the swap is the difference between the $2$ bond prices$(-$$$4\mathrm{.}267$ million$).$

$$ If the financial institution had been in the opposite

$$ position of paying fixed and receiving floating, the$$

$$ value of the swap would be $$4\mathrm{.}267$ million.