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An interest-rate swap with these features: start date 1/1/2022, maturity is five years, the notional principal is $100 million, payments occur every six months, the
An interest-rate swap with these features: start date 1/1/2022, maturity is five years, the notional principal is $100 million, payments occur every six months, the fixed-rate payer pays a rate of 9.05%, and receives LIBOR, while the floating-rate payer pays LIBOR and receives 9%. Now suppose that at a payment date, the applicable LIBOR is at 6.5% How much does the fixed-rate payer pay assuming day count conventions do apply :
a. $4487808
b. $4550138
c. $4525000
d. $4710958
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