Suppose the 1-year effective annual interest rate is 5.8% and the 2-year effective rate is 6.7%. Compute the fixed rate in a 2-year amortizing interest rate swap based on $340,000 of notional principal in the first year and $190,000 in the second year.

a. 6.74%

b. 6.23%

c. 6.11%

d. 6.67%

e. 6.42% <------ Correct

I already have the answer, please show work, I need to learn how to do this :)