Answered step by step
Verified Expert Solution
Question
1 Approved Answer
If the fixed rate on a new par value 2-year swap were 7%, what is the value of the fixed-payers position on a 6%/LIBOR swap
If the fixed rate on a new par value 2-year swap were 7%, what is the value of the fixed-payers position on a 6%/LIBOR swap with 2 years left to maturity and a notional principal of $10M? Assume semi-annual payments.
I know the answer is +183,654, however, I would like the working out, thank you
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started