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3. The term and price of zero-coupon bonds are given in the following table. 1 2 3 4 Term to maturity Price 0.98 0.91 0.87

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3. The term and price of zero-coupon bonds are given in the following table. 1 2 3 4 Term to maturity Price 0.98 0.91 0.87 0.83 Hannah enters into a 4-year interest rate swap. She wants to swap the floating interest rates for a fixed interest rate. Calculate the market value of the swap if Hannah decided to sell it today assuming a notional value of 50,000 and the 1-year spot interest rate at the start of year 4 of 4.9%

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