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please don't use Excel to solve this problem and show all steps. For Problems 3 and 4, use the following table of zero-coupon bond prices

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For Problems 3 and 4, use the following table of zero-coupon bond prices (per dollar face amount): Quarters 1 2 3 Zero-coupon bond price 0.985 0.971 0.954 3 The fixed rate for a 4-quarter interest rate swap with a level notional amount is 1.74%. Find the price per unit of maturity value for a 4-quarter (1-year) zero-coupon bond. A) 0.929 B) 0.933 C) 0.935 D) 0.937 E) 0.939 4 What is the swap rate for a 2-quarter interest rate swap that is deferred one quarter? The swap has a level notional amount and applies to the 20 and 3rd quarters only. A) 1.61% B) 1.63% C) 1.65% D) 1.67% E) 1.69%

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