1 You wish to hedge against interest rate changes so you enter into a swap 2 contract with another party for the next ten years based on the term 3 structure shown to the right, and the notional amount shown below. \begin{tabular}{cr} \multicolumn{2}{c}{ Term Structure } \\ \hline Year & Rate \\ \hline 1 & 2.9300% \\ 2 & 3.0765% \\ 3 & 3.2303% \\ 4 & 3.3918% \\ 5 & 3.5614% \\ 6 & 3.7395% \\ 7 & 3.9265% \\ 8 & 4.1228% \\ 9 & 4.3289% \\ 10 & 4.5454% \end{tabular} 1 You wish to hedge against interest rate changes so you enter into a swap 2 contract with another party for the next ten years based on the term 3 structure shown to the right, and the notional amount shown below. \begin{tabular}{cr} \multicolumn{2}{c}{ Term Structure } \\ \hline Year & Rate \\ \hline 1 & 2.9300% \\ 2 & 3.0765% \\ 3 & 3.2303% \\ 4 & 3.3918% \\ 5 & 3.5614% \\ 6 & 3.7395% \\ 7 & 3.9265% \\ 8 & 4.1228% \\ 9 & 4.3289% \\ 10 & 4.5454% \end{tabular}