Suppose you observe the following instruments in the swap market: Instrument Quote 6m LIBOR 1.5% ly IRS 1.8% 2y IRS 2.0% 3y IRS 2.05% The market is uncollateralized, and all interest rate swaps (IRS) have semi-annual payment. (a) What is the 1.5y tenor interest rate swap with semi-annual payment? (b) A forward starting swap with a 2y tenor starting at t = ly has the following cashflows: Time (y) 1.5 2.0 2.5 3.0 Pay Rec Par Swap Rate 6m LIBOR Par Swap Rate 6m LIBOR Par Swap Rate 6m LIBOR Par Swap Rate 6m LIBOR What is the par swap rate for this forward starting swap? Suppose you observe the following instruments in the swap market: Instrument Quote 6m LIBOR 1.5% ly IRS 1.8% 2y IRS 2.0% 3y IRS 2.05% The market is uncollateralized, and all interest rate swaps (IRS) have semi-annual payment. (a) What is the 1.5y tenor interest rate swap with semi-annual payment? (b) A forward starting swap with a 2y tenor starting at t = ly has the following cashflows: Time (y) 1.5 2.0 2.5 3.0 Pay Rec Par Swap Rate 6m LIBOR Par Swap Rate 6m LIBOR Par Swap Rate 6m LIBOR Par Swap Rate 6m LIBOR What is the par swap rate for this forward starting swap