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O 891.20 O 699.07 O 563.64 QUESTION 11 A person borrowed 10000 for three years at a variable interest rate. They will make an interest
O 891.20 O 699.07 O 563.64 QUESTION 11 A person borrowed 10000 for three years at a variable interest rate. They will make an interest payment to the lender at the end of each year and also repay $10000 at the end of 3 years. The one-year spot rate is 5.0% the two-year spot rate is 5.5%, and the three-year spot rate is 6.0% They decide to enter into an interest rate swap to fix the interest rate for 3 years. Determine the level swap rate R. O 6.31% 0 7.66 0 4.91 5.96 O 3.27 QUESTION 12 If the forward rate for year 1.40.5-3.0m. the forward rate for year 2. f12-358. the forward rate for year 3.823 - 4.2% and the forward rate for year 4. 3. - 5.0%, determine the four year spot rate. Hint the spot rate an annual rate 5374 Chick Save and Subito sucedit. Got Source to save all answers san Type here to search D DLL
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