What is the value of a two-year fixed-for-floating compounding swap where the principal is $100 million and

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What is the value of a two-year fixed-for-floating compounding swap where the principal is $100 million and payments are made semiannually? Fixed interest is received and floating is paid. The fixed rate is 8% and it is compounded at 8.3% (both semiannually compounded). The floating rate is LIBOR plus 10 basis points and it is compounded at LIBOR plus 20 basis points. The LIBOR zero curve is flat at 8% with semiannual compounding. The risk-free discount rate is 7.5% continuously compounded.
Compounding
Compounding is the process in which an asset's earnings, from either capital gains or interest, are reinvested to generate additional earnings over time. This growth, calculated using exponential functions, occurs because the investment will...
Discount Rate
Depending upon the context, the discount rate has two different definitions and usages. First, the discount rate refers to the interest rate charged to the commercial banks and other financial institutions for the loans they take from the Federal...
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