Question 1 1 pts A person borrowed $1000 for 4-years at a variable interest rate. They will make an interest payment to the lender at the end of each year and also repays $1000 at the end of 4 years. The spot rates are as follows: Time to spot Maturity rate 1 3.4% 2 3.8% 3 4.4% 4. 4.7% The person decided to enter into an interest rate swap to fix the interest rate for 4 years. Determine the level swap rate R. Enter your answer as a decimal to four decimal places. e.g. if the swap rate is 5.62%, you would enter 0.0562. Question 2 1 pts A person enters into a deferred swap. They wants to swap the floating interest rates for a fixed interest rate during the third and fourth years. The level notional amount of the swap is 1000 each year. The spot rates are as follows: Time to spot Maturity rate 1 3.3% 2 3.8% 3 4.4% 4.7% 4. Determine the swap rate R. Enter your answer as a decimal to four decimal places. e.g. if the swap rate is 5.62%, you would enter 0.0562