25. You are given the following spot rates: 4 3 Years to Maturity 7.50% 6.25% 5.25% 4.50% 4.00% Spot Rate You enter into a 5-year interest rate swap with a notional amount of 100,000 to pay a fixed rate and to receive a floating rate based on future 1-year LIBOR rates. The swap has annual payments. If the 1-year LIBOR rate after 1 and 2 years turn out to be 5.25% and 8.10%, respectively, determine the net cash flows that you will exchange with the swap counterparty, in the first three years. Pay 4,000 in year 1, pay 75o in year 2, pay 2,850 in year 3 A Pay 3,197 in year 1, pay 1,947 in year 2, receive 903 in year 3 Pay 1,967 in year 1, pay 717 in year 2, receive 2,133 in year 3 Pay 1,500 in year 1, pay 250o in year 2, receive 2,600 in year 3 Receive 3,197 in year 1, receive 1,947 in year 2, pay 903 in year 3