Assume annual compounding .

Let z1= 4% z2 =6% Z3 =8%

1-Determine the fixed rate (in percent)on a three-year interest rate swap with a nominal par value of 100 million dollars. The swap makes three payments at the end of each year(three decimal places)

2-For a parallel shift (instantaneous) of plus 100 basis points, determine the value of a receive fixed and pay floating interest rate swaps (in millions of dollars)(three decimal places)

3-For a parallel shift (instantaneous) of plus 100 basis points, determine the value of a pay fixed and receive floating interest rate swaps (in millions of dollars)(four decimal places)

4-Determine the fixed rate (in percent ) on a new swap after the interest rate shift. (three decimal places)