You are given the following table of spot rates: Term in Years Spot Rate 1...
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You are given the following table of spot rates: Term in Years Spot Rate 1 2.7% 2 2.9% 3 3.4% 4 3.8% 5 4.5% 6 4.7% Consider a deferred interest rate swap with a level notional amount of 100,000 and a term of 6 years. Each settlement period is 1 year, and the variable rate is the 1-year spot interest rate at the beginning of the settlement period. Under the swap, there is no swapping of interest rates during the first 2 years. During the last 4 years, the settlement period will be 1 year. Determine the swap rate for the last 4 years of the swap
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