Question: Treceive 8% fixed and pay 6-month LIBOR Tremaining maturity: 1.25 years NP = US$100 million 3 months ago, 6-month libor=10.2% Value of the swap? 0

Treceive 8% fixed and pay 6-month LIBOR Tremaining maturity: 1.25 years

Treceive 8% fixed and pay 6-month LIBOR Tremaining maturity: 1.25 years NP = US$100 million 3 months ago, 6-month libor=10.2% Value of the swap? 0 @ 1. How to clauclate the flowing CF? What is the formula? what is the meaning of 10.2%? 2. How to calculate the discount factor? It 0.25 0.75 1.25 Total Value LIBOR fixed CF Flowing CF Discount FPV of fixed PV of floati 10.0% 4 105.1 0.9753 3.90124 102.5051 10.5% 4 0.9243 3.697084 11.0% 104 0.8715 90.63957 98.2379 102.5051 4.267 3. Value of swap formula is V(swap) = B(fix) - B(fi) or V(swap) = B(receive) - B(pay)? I have this question it is because my book is B(fix)- B(fi), but I study a lot in similar questions, all of them use the value of received - the value of pay to get the value of swap

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