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You are given the following term structure: An interest rate spawn is created for a...

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Finance

imageYou are given the following term structure: An interest rate spawn is created for a loan of 100,000 at time 2 such that principal will be repaid according to the following schedule:

You are given the following term structure: In (years) Sn Tin-1,n] B(0,n) 3.5% 3.5% 0.96618 4.2% 4.9047% 0.92101 4.6% 5.4046% 0.87379 4.9% 5.8052% 0.82584 5.3% 6.9153% 0.77243 An interest rate spawn is created for a loan of 100,000 at time 2 such that principal will be repaid according to the following schedule: Time UTAW Principal repaid 50,000 30,000 20,000 Calculate the swap rate. 5.0945% 5.681% 4.1786% 5.220% 6.0104%

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