ear from now short-and medium-term Treasury yields decrease to 8%, so the term structure is then flat. (The changes actually occur in month 5.) Phillip's credit standing is unchanged; it can still borrow at 2 percentage points over Treasury rates.)

c. One year from now, what net swap payment will Phillip's make or receive? (Do not round intermediate calculations. Enter your answer in millions rounded to 2 decimal places.)

Net swap payment $0.11selected answer correct million per quarter

d. One year from now, suppose that Phillip's wants to cancel the swap. How much would it need to pay the swap dealer? (Do not round intermediate calculations. Enter your answer in millions rounded to 2 decimal places.)

Amount to pay not attempted million