Problem 3 here!

Problem 3. [25 points] A financial institution entered into an interest rate swap with company X two years ago to receive 10% fixed rate and pay 6-month LIBOR on a principal of $10 million ending in three years. Thus, the remaining life of the contract today is 1 year. The payments are made semiannually and the rates are quoted with semiannual compounding: The following were the discount factors two years ago when the swap was entered: Time-to-Maturity (months) Discount factor 6 0.9608 12 0.9231 18 0.8869 24 0.8521 30 0.8187 36- 0.7866 How much did the financial institute pay to or receive from company X two years ago to enter into the swap? [25 points]