Question: Two parties enter a 2-year fixed-for-floating interest rate swap paying semi-annually. Given the following spot rates, what is the fixed swap rate? Maturity Spot Rate

Two parties enter a 2-year fixed-for-floating interest rate swap paying semi-annually. Given the following spot rates, what is the fixed swap rate?

Two parties enter a 2-year fixed-for-floating interest rate swap paying semi-annually. Given

Maturity Spot Rate 0.5 5% 1 6% 1.5 6.50% 2 7%

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