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A. (10 pts) What fixed rate (anineatized swap rate) de you ghite the cusfomer (compreded fa 4 Uecitual places)? B. (5 pts) What is the

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A. (10 pts) What fixed rate (anineatized swap rate) de you ghite the cusfomer (compreded fa 4 Uecitual places)? B. (5 pts) What is the initial value of the swap that you just priced in A ? axverme the atwower is 6,1 the ii. (5 pts) What is the new value of the floating coupon bond (B2) component of the swap per $1 notional? iii. (5 pts) What is the new value of the swap to the customer if the swap had a notional amount of $40 million? D. Assume the notional amount of the swap is 540 mittion. i. (4pts) What will be the amount of the fixed payment in dollars from the customer to the dealer at the first settlement date? (you can assume the answer in part A is 6.10%, if you could not solve it) ii. (4 pts) What will be the first floating payment in dollars from the dealer to the customer at the first settlement date? iii. (2 pts) What is the net payment at the first settlement date and from who to whom? E. Returning to the original interest rates in part A, assume that there are Eurodollar futures contracts (on 3-month Libor) maturing in exactly 6 and 9 months from today and are quoted at 92.00 and 90.00, respectively. Using boot-strapping techniques discussed in class: (5 pts) What should the 9-month Libor spot rate be? A. (10 pts) What fixed rate (anineatized swap rate) de you ghite the cusfomer (compreded fa 4 Uecitual places)? B. (5 pts) What is the initial value of the swap that you just priced in A ? axverme the atwower is 6,1 the ii. (5 pts) What is the new value of the floating coupon bond (B2) component of the swap per $1 notional? iii. (5 pts) What is the new value of the swap to the customer if the swap had a notional amount of $40 million? D. Assume the notional amount of the swap is 540 mittion. i. (4pts) What will be the amount of the fixed payment in dollars from the customer to the dealer at the first settlement date? (you can assume the answer in part A is 6.10%, if you could not solve it) ii. (4 pts) What will be the first floating payment in dollars from the dealer to the customer at the first settlement date? iii. (2 pts) What is the net payment at the first settlement date and from who to whom? E. Returning to the original interest rates in part A, assume that there are Eurodollar futures contracts (on 3-month Libor) maturing in exactly 6 and 9 months from today and are quoted at 92.00 and 90.00, respectively. Using boot-strapping techniques discussed in class: (5 pts) What should the 9-month Libor spot rate be

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