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Create a table of payments and a flow chart for a plain vanilla variable for fixed swap option. Assume a notional value of $100,000 and
Create a table of payments and a flow chart for a plain vanilla variable for fixed swap option. Assume a notional value of $100,000 and a 3-year tenor with semi-annual payments. The fixed portions interest rate is 4.25%. The variable portion is 2.00% plus LIBOR, with the interest rates for the variable portion of the swap forecast to be 1.75%, 1.9%, 2%, 2.375% 2.5%, and 2.0%. (NOTE: These are annual interest rates. You need to divide by 2 to calculate the semi-annual payments.)
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