5. The current term structure of quarterly compounding forward rates is given by f;(0)=0.01+0.0003xj, j =0,---, 119. Use the Black formula to price a 10-year cap with notional value of $lm and the ATM strike rate, i.e., the 10-year ATM swap rate. Note that the payment frequency is a quarter year for caps. 5.1. Calculate the 10-year swap rate (Note that the fixed leg has semi-annual payment). 5.2. Price the 10-year maturity cap for the ATM strike rate, take a uniform forward rate volatility to be 25%. 5. The current term structure of quarterly compounding forward rates is given by f;(0)=0.01+0.0003xj, j =0,---, 119. Use the Black formula to price a 10-year cap with notional value of $lm and the ATM strike rate, i.e., the 10-year ATM swap rate. Note that the payment frequency is a quarter year for caps. 5.1. Calculate the 10-year swap rate (Note that the fixed leg has semi-annual payment). 5.2. Price the 10-year maturity cap for the ATM strike rate, take a uniform forward rate volatility to be 25%