Suppose you enter into a 3-quarter interest rate swap with a level notional amount as the receiver. The swap rate is based on the following zero-coupon bond prices: Bond term (in quarters) 1 2 3 4 Zero-coupon bond 98.40 96.90 95.30 93.50 price per 100 face What net interest rate will you pay in the second quarter if the spot interest rate for the second quarter is 0.018? A) 0.0010 B) 0.0012 C) 0.0016 D) 0.0018 E) a different rate Suppose you enter into a 3-quarter interest rate swap with a level notional amount as the receiver. The swap rate is based on the following zero-coupon bond prices: Bond term (in quarters) 1 2 3 4 Zero-coupon bond 98.40 96.90 95.30 93.50 price per 100 face What net interest rate will you pay in the second quarter if the spot interest rate for the second quarter is 0.018? A) 0.0010 B) 0.0012 C) 0.0016 D) 0.0018 E) a different rate