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NO EXCEL SOLUTION THANKS You are given the following spot rates: Years to Maturity 1 Spot Rate 4.00% 4.50% 5 5.25% 6.25% 7.5% You enter

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NO EXCEL SOLUTION THANKS

You are given the following spot rates: Years to Maturity 1 Spot Rate 4.00% 4.50% 5 5.25% 6.25% 7.5% You enter into a 5-year interest rate swap with a notional amount of 100,000 to pay a fixed rate and to receive a floating rate based on future 1-year LIBOR rates. If the swap has annual payments, what is the fixed rate you should pay

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