1. An investor holds the fixed-payer position in a 6.47%/LIBOR swap with $3M notional principal, semi-annual payments, and exactly one-year remaining. What is the value of the existing fixed-payer position, if the swap rate for new one-year swaps with matching notional principal is 4.59%/LIBOR?

2.What is the net swap cashflow for the fixed payer in a swap on a certain date, if the swap rate is 7.14%/LIBOR, the relevant LIBOR rate is 7.86%, the notional principal is $4.3M, and swap payments are semi-annual?

Please note that the notional principal is expressed in millions, but your final answer should be in terms of just Dollars (for example, if you calculated a cashflow of $100,000 (one hundred thousand dollars) you would report this value as $100,000 and not $0.1M).