3. A swap lasts for three years and has a notional value of $100. The seller pays LIBOR + 0.5% and receives 3% from the buyer. LIBOR is currently 2.2% and is expected to change to 2.5% in six months. It is expected to stay at 2.5% for a full year, but in a year and a half the rate is expected to go to 2.6% and stay there. What is the present value of the seller's leg in this swap? (Report your answer to the nearest penny).

the answer is 8.53, can you how to in excel