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.2 Suppose that oil forward prices for 1 year, 2 years, and 3 years are $20,$21, and $22. The 1-year effective annual interest rate is

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.2 Suppose that oil forward prices for 1 year, 2 years, and 3 years are $20,$21, and $22. The 1-year effective annual interest rate is 6.0%, the 2-year interest rate is 6.5%, and the 3 -year interest rate is 7.0%. a. What is the 3-year swap price? b. What is the price of a 2-year swap beginning in one year? (That is, the first swap settlement will be in 2 years and the second in 3 years.)

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