Question
CSU Corp. has entered into a swap in which it agrees to pay 3% per year, in quarterly payments, and receive the SOFR 3-month reference
CSU Corp. has entered into a swap in which it agrees to pay 3% per year, in quarterly payments, and receive the SOFR 3-month reference rate on $100,000,000 notional principal. The swap currently has a remaining life of 8 months. Assume SOFR spot rates, with continuous compounding for 2, 5, and 8 months from today are 2.6%, 3.1% and 3.6% respectively. The continuously compounded 3-month SOFR rate observed for the last 1-month period was 2.3%. What is the value of this SWAP today to CSU corp? Group of answer choices-$63,296 $63,296 -$173,205 $173,205 -$252,801 $252,801 -$367,272 $367,272
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