Consider pricing a one$-$year swap on December $11,$ Year $1,$ given the following yield information pertaining to floating

rates:

We would like to use this information to derive the fixed swap rate. The general expression for the swap rate is

$k^{**}=\frac{1-B(T_0,T_N)}{s_{0}B(T_0,T_1)+s_{1}B(T_0,T_2)+\text{c}\text{d}\text{o}\text{t}\text{s}+s_{N-1}B(T_0,T_2)}$

a$)$ In order to compute the swap rate, what would we input for $s_0,s_1,s_2,s_3,?(1$ mark$)$

b$)$ Based on your input for $s_0,s_1,s_2,s_3,$ what is the value of the swap rate? $(2$ marks$)$

c$)$ If you expect the floating rates to increase, would paying a fixed swap rate be advantageous or disadvantageous to

you? Why? $(2$ marks$)$