a. (7 points) Complete the following table. Please keep 4 decimal points. Assume annual coupon payment for coupon bond. Note that no partial credit will be given if the number is incorrect. Also note that if incorrect number/answer is used in the following sub-questions with correct method, full credit will be given to the sub- question. year 1 2 3 Par Coupon Rate 5% 6% 6.5% Zero Coupon Bond Price Oil Forward Price 73.5 Oil Swap Price 75 74 b. (5 points) An oil buyer will need 1,000 barrels of oils in both year 2 and year 3 and just signed a contract to hedge the oil price risk. Based on the contract specification, the oil buyer will pay the same fixed oil price in both year 2 and year 3. Based on the information in the table in (a), what should be the fair oil price per barrel in the contract? c. (8 points) As the swap counterparty for the oil buyer, you will receive the fixed oil price and pay the floating oil price. How do you hedge the oil price risk in your swap position? Any risk other than oil price risk still remaining? If yes, how do you hedge? Elaborate