3 - year interest rate swaps are now being quoted 3 1% ( pay fixed , semi - annual ) , and 5 year interest rate swaps at 3 .8 % ( pay fixed , semi - annual ) . ( Hint : Calculate the dollar - amount of contractual fixed payments to Goldman Trust under the swap agreement . ) Note : Assume the floating - rate portion is exactly at market , i . e . , no gain or loss in value , and will continue to be regardless of market changes . Thus , only the fixed - rate portion is subject to market risk