Pls answer 3,4,5. Show all work pls!

3. An insurance company has a $50 million portfolio of 6-year zero coupon bonds which it wants to protect against an increase in interest rates. It enters into an interest rate swap with a commercial bank where MDFixed=5 and MDFloating=1. If the insurance company want to reduce its exposure to interest rate changes by half, what is the notional principal of the swap contract? 1 4. The duration of the fixed portion of a swap is 6 whereas the floating portion of the swap has a duration of 2. If interest rates rise by 10 bps, who gains and by how much? 5. A credit union has funded 10% fixed-rate assets with variable-rate liabilities at LIBOR +2%. A commercial bank has funded variablerate assets with fixed-rate liabilities at 6%. The bank's variable-rate assets earn LIBOR +1%. The thrift and the bank have reached agreement on an interest-rate swap with the fixed-rate swap payment at 6 percent and the variable-rate swap payment at LIBOR. What is the net return earned by the credit union after the swap? 3. An insurance company has a $50 million portfolio of 6-year zero coupon bonds which it wants to protect against an increase in interest rates. It enters into an interest rate swap with a commercial bank where MDFixed=5 and MDFloating=1. If the insurance company want to reduce its exposure to interest rate changes by half, what is the notional principal of the swap contract? 1 4. The duration of the fixed portion of a swap is 6 whereas the floating portion of the swap has a duration of 2. If interest rates rise by 10 bps, who gains and by how much? 5. A credit union has funded 10% fixed-rate assets with variable-rate liabilities at LIBOR +2%. A commercial bank has funded variablerate assets with fixed-rate liabilities at 6%. The bank's variable-rate assets earn LIBOR +1%. The thrift and the bank have reached agreement on an interest-rate swap with the fixed-rate swap payment at 6 percent and the variable-rate swap payment at LIBOR. What is the net return earned by the credit union after the swap