Suppose the 1-year effective annual interest rate is 4.6% and the 2-year effective rate is 3.2%. Compute the fixed rate in a 2-year amortizing interest rate swap based on $440,000 of notional principal in the first year and $240,000 in the second year.

Please show steps

a. 4.11%

b. 3.91%

c. 4.69%

d. 3.22%

e. 3.63%