1. You enter into a plain vanilla interest rate swap with a bank, and you agree to pay fixed and receive floating. If the floating rate is quoted lower than the fixed rate, you will be a net payer of the swap at the payment interval. 2. You work for the coffee desk at Small Beans Coffee. Your associate asks to determine the 1 year futures price for coffee. If the convenience yield is larger than the storage costs we calculate a . Annual interest rate is 1% storage costs are 2% convenience yield is 4% spot coffee at $2.50 per pound