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8. Swap contracts have quarterly settlement periods where payments are at the end of each period and the variable (floating) payment is based on the actual 1- year spot rate at the beginning of the period. You enter a 9-month swap paying a fixed rate and receive the floating rate. The notional on the swap is $1 in the first quarter, $2 in the second quarter and $3 in the third quarter. What is the fixed quarterly rate that you pay given the following set of annual effective spot rates? Term (k) z[k] 0.25 years 0.50 years 0.75 years 6.0% 6.5% 7.5% A) 1.86% C) 1.96% E) 7.83% B) 1.92% D) 7.43% 8. Swap contracts have quarterly settlement periods where payments are at the end of each period and the variable (floating) payment is based on the actual 1- year spot rate at the beginning of the period. You enter a 9-month swap paying a fixed rate and receive the floating rate. The notional on the swap is $1 in the first quarter, $2 in the second quarter and $3 in the third quarter. What is the fixed quarterly rate that you pay given the following set of annual effective spot rates? Term (k) z[k] 0.25 years 0.50 years 0.75 years 6.0% 6.5% 7.5% A) 1.86% C) 1.96% E) 7.83% B) 1.92% D) 7.43%