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3. A financial institution entered into an interest rate swap with company X. Under the term of the swap, it receives 6% fixed rate and
3. A financial institution entered into an interest rate swap with company X. Under the term of the swap, it receives 6% fixed rate and pays SOFR-compound on a principal of $10 million. The payments are made annually. The remaining life of the contract is 6 years. Consider the market scenario in the following table: the present time is 0 and the 1-year SOFR-compound in year t stands for the interest derived from compounding of all SOFR in the period t1 to t. Write down the cash flow stream of the financial institution resulting from the swap in the following three years
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