Q1: Here is a table of 1 year forward Libor rates: F[0,1] 1.50 F[1,2] 2.25 F[2,3] 3.00 Fwd Rates (%) Ayesha and Jafari are counterparties to a 3 year swap with a notional prin- cipal amount of $1 million. Payments are exchanged at the end of each year. Ayesha will make (floating) payments based on the current 1 year LIBOR rate. Jafari will make payments based on the (fixed) swap rate r. a) What are Ayesha's expected payments at the end of each year? b) Find r (so that the swap is fair)