5) At the end of the year, both Company ABC and Company XYZ are required to report the fair market value of its swaps. Assume that the swaps were put in place at the start of the year such that exactly one year of the swap has expired at the time you mark the swap to market. Given the following information, determine what the fair market value of the company's swaps are: Zt.t+0.5 = 5.00% Zt,t+1.0 = 5.15% Zt,t+1.5 = 5.30% Zt,t+2.0 = 5.45% Zt,t+2.5 = 5.70% Zt,t+3.0 = 5.95% Zt,t+3.5 = 6.07% Zt,t+4.0 = 6.15% Zt,t+4.5 = 6.20% Zt,t+5.0 = 6.30% Calculate the mark-to-market valuations by comparing the fixed rate with the derived forward rates. Make sure that your spreadsheet can calculate fair market values for subsequent years taking into account market movements. 5) At the end of the year, both Company ABC and Company XYZ are required to report the fair market value of its swaps. Assume that the swaps were put in place at the start of the year such that exactly one year of the swap has expired at the time you mark the swap to market. Given the following information, determine what the fair market value of the company's swaps are: Zt.t+0.5 = 5.00% Zt,t+1.0 = 5.15% Zt,t+1.5 = 5.30% Zt,t+2.0 = 5.45% Zt,t+2.5 = 5.70% Zt,t+3.0 = 5.95% Zt,t+3.5 = 6.07% Zt,t+4.0 = 6.15% Zt,t+4.5 = 6.20% Zt,t+5.0 = 6.30% Calculate the mark-to-market valuations by comparing the fixed rate with the derived forward rates. Make sure that your spreadsheet can calculate fair market values for subsequent years taking into account market movements