A person enters into a rate swap where the floating rate resets annually. The notional amount of the swap is $3,000 the first year, $5,000 the second year and $6,500 the third year. Your are given the following spot rates

time	spot rate
1	4.0%
2	5.0%
3	5.7%

Determine the swap rate. Hint: It will require calculation of some forward rates as an intermediate step.

		6.03%
		6.61%
		7.30%
		8.42%
		9.36%