A company enters into an interest rate swap with a two-year term and a notional amount of $1000. The fixed rate of the swap is 5% and the variable rate is reset annually to the one-year spot rate. Calculate the market value of the swap to the company at the beginning of the second year, when the one-year spot rate is 4%.

*it should be present valued to the beginning of the year (happens at end of year and MV is at beginning of year).