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Interest Rate Swap: a) Explain in words how annualized spot rates can be computed from annualized futures rates? b) It is March now. Compute the

Interest Rate Swap: a) Explain in words how annualized spot rates can be computed from annualized futures rates? b) It is March now. Compute the interest payments for a notional $25 million dollars if the 3- month futures quote with June expiry is 99.50 and the 3-month futures quote Sept expiry is 98.00.

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