Questions $1$

Company $x$ has been offered the rates shown in Table $7\mathrm{.}4.$ It can invest for four years at $2\mathrm{.}8\%.$

What floating rate can it swap this fixed rate into?

Questions $2$

Company $Y$ has been offered the rates shown in Table $7\mathrm{.}4.$ It is confident that it will be able to

invest at LIBOR minus $50$ basis points for the next ten years. What fixed rate can it swap this

floating rate into?

Table $7\mathrm{.}4$ Example of bid and ask fixed rates in the swap market for a swap where

payments are exchanged quarterly $($percent per annum$).$