1) Can you please explain how is the term structure defined? Namely, how would it changes if today were february instead of january 1st?

2) Can you please explain why de fixed and floting parts are so different? Why the second term is 1050 in the fixed and 1000 on the floating option.

Example 10.3 Today is January 1st. The swap residual maturity is 9 months. The notional principal is $1,000. You receive 5% fixed semiannual payments and pay semiannual cash flows based on the 6-month Libor rate on March 31st and September 30th. Next payment is based on Libor at 6%. The current term structure is R(0,025)-5% and R(0,0.75)-7%. The value of the fixed leg is 50 1,050 1,047.44 + (1 +0.05)4 (0.07)4 while the value of the floating leg is 1.000 (1 + 0.05) 30 1,017.51 (1 + 0.05)T Finally, the value of the swap is 1047.44-1017.51 29.93