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Find the fixed rate on an equity swap in which the stock index is at 2,000. Payments are every 180 days (assume a 360-day year)
Find the fixed rate on an equity swap in which the stock index is at 2,000. Payments are every 180 days (assume a 360-day year) for one year. The prices of Eurodollar zero coupon bonds are 0.9756 (180 days) and 0.9434 (360 days).
a. 5.9 percent
b. 5 percent
c. 6 percent
d. 5.5 percent
e. 2.95 percent
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