7. Consider the following table Quarter Gas swap price Zero-coupon bond price 1 2.2326 0.98 2 3 4 2.2753 2.2583 2201 0.97 0.95 0.93 The gas swap prices are swap prices for the remining period: thus for example, in quarter-1 the price is for a 4-quarter swap, whereas in quarter-3 is for a 2-quarter swap covering quarters- 3 and 4. (a) [2 marks] What is the fixed rate in a 4-quarter interest rate swap? (b) [4 marks] What are the forward prices for each quarter (Hint: Use the set of swap prices) 7. Consider the following table Quarter Gas swap price Zero-coupon bond price 1 2.2326 0.98 2 3 4 2.2753 2.2583 2201 0.97 0.95 0.93 The gas swap prices are swap prices for the remining period: thus for example, in quarter-1 the price is for a 4-quarter swap, whereas in quarter-3 is for a 2-quarter swap covering quarters- 3 and 4. (a) [2 marks] What is the fixed rate in a 4-quarter interest rate swap? (b) [4 marks] What are the forward prices for each quarter (Hint: Use the set of swap prices)