A financial institution entered into an interest rate swap with company X two years ago to receive 8% fixed rate and pay 6-month LIBOR on a principal of $10 million in three years. Thus, the remaining life of the contract today is 1 year. The payments are made semiannually and the rates are quoted with semiannual compounding. (a) The following are the discount factors two years ago when the swap was signed: Time-to-Maturity (months) Discount factor 6 0.9608 12 0.9231 18 0.8869 24 0.8521 30 0.8187 0.7866 36 How much did the financial institution pay to or receive from company X two years ago to enter into the swap? (b) The following are the historical 6-month LIBOR rates in the past two years: Time 6-month LIBOR (%) 24 months ago 7.0 18 months ago 8.0 12 months ago 6 months ago 10.0 6.8 Write down the net cash flow stream of the financial institution resulting from the swap in the past two years (including the cash flow today). A financial institution entered into an interest rate swap with company X two years ago to receive 8% fixed rate and pay 6-month LIBOR on a principal of $10 million in three years. Thus, the remaining life of the contract today is 1 year. The payments are made semiannually and the rates are quoted with semiannual compounding. (a) The following are the discount factors two years ago when the swap was signed: Time-to-Maturity (months) Discount factor 6 0.9608 12 0.9231 18 0.8869 24 0.8521 30 0.8187 0.7866 36 How much did the financial institution pay to or receive from company X two years ago to enter into the swap? (b) The following are the historical 6-month LIBOR rates in the past two years: Time 6-month LIBOR (%) 24 months ago 7.0 18 months ago 8.0 12 months ago 6 months ago 10.0 6.8 Write down the net cash flow stream of the financial institution resulting from the swap in the past two years (including the cash flow today)