suppose the current term structure of interest rates is (.070, .073, .077, .081, .084, .088). A plain vanilla interest rate swap will make payments at the end of the year equal to the floating short rate that was posted at the beginning of that year. A 6-year swap having a notional principal of $10 million is being configured.

a. What is the value of the floating rate portion of the swap? **Note: The answer is $3.971 million, but I don't know how.

b. What rate of interest for the fixed portion of the swap would make the two sides of the swap equal? **Note: the answer is 8.64%, but I don't know how.