Q1. This question uses the spot rates in the following table, expressed as APR with s.a. compounding (i.e., BEY). Date t 6m ly 18m 2y 30m 3y Rate r(0,t) 0.0310 0.0340 0.0375 0.0420 0.0470 0.0510 a) What is the swap rate in a 2-year plain-vanilla swap? b) Given this rate, what is the net payment to the fixed payer at date ti = 6m? c) Consider now an amortizing 2-year swap, on which the principal falls by 25% of the original after every 6 months. What is the swap rate? d) Consider now a forward-start 2-year swap starting in 1 year. (Thus, all payment dates are 1 year later than they would be on a plain-vanilla swap.) What is the swap rate on this swap? e) Finally, what is the swap rate on an amortizing forward-start 2-year swap starting in 1 year, on which the principal falls by 25% of the original after every 6 months? Q1. This question uses the spot rates in the following table, expressed as APR with s.a. compounding (i.e., BEY). Date t 6m ly 18m 2y 30m 3y Rate r(0,t) 0.0310 0.0340 0.0375 0.0420 0.0470 0.0510 a) What is the swap rate in a 2-year plain-vanilla swap? b) Given this rate, what is the net payment to the fixed payer at date ti = 6m? c) Consider now an amortizing 2-year swap, on which the principal falls by 25% of the original after every 6 months. What is the swap rate? d) Consider now a forward-start 2-year swap starting in 1 year. (Thus, all payment dates are 1 year later than they would be on a plain-vanilla swap.) What is the swap rate on this swap? e) Finally, what is the swap rate on an amortizing forward-start 2-year swap starting in 1 year, on which the principal falls by 25% of the original after every 6 months