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Assume that you are a swap dealer and have just acted as a counterparty in an interest rate swap. The notional principal for the swap

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Assume that you are a swap dealer and have just acted as a counterparty in an interest rate swap. The notional principal for the swap was $7.5 million and you are now obligated to make five annual payments of 4 percent interest. The floating rate that you will receive is 4.2 percent, and the floating payments to you are annual as well. 1. If interest rates do not change over the next five years, your annual net cash flow will be positive $ Do not include a comma in your answer and give your answer as a whole number. 2. The net present value of your swap agreement at a discount rate of 4 percent (compounded annually) is positive - $ Do not include a comma in your answer and give your answer as a whole number

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