1. Company A and B entered a 4-year interest rate swap on 5th May 2015. The level notional amount for all 4 years is 250,000. The first settlement period starts on 5th May 2015 with annual subsequent payments thereafter. Company A agreed to pay variable interest rate that is based on the 1-year spot rate at the beginning of each settlement period. Company B will pay Company A the fixed interest rate of 4% on each settlement date. Assume the spot interest rate curve for 5th May 2015 is as follows: Year (c) 1 3.80% 2 4.1% 3 4.3% 4 4.5% 5 4.7% Spot Interest rate (r). Company A decides to sell the swap on 5th May 2017. From Company A's position, calculate the market value of the swap on 5th May 2017