1. An FI pays 6 month LIBOR and receives 8% APR S-A on $100m There is 15 months remaining on the swap. The CCAR spot rates for 3,9 and 15 months are r3=10%,r9=10.5% and r15=11%. Three months ago 6 month LIBOR was 10.2% APR S-A. a) Value the swap using the Forward Rate Method. b) Has LIBOR increased or decreased since the swap was initiated? Is the FI paying or receiving the floating rate? Has the value of the swap increased or decreased