Supposing the effective quarterly interest rate is 1.5%, what are the per-barrel swap prices for 4-quarter and 8-quarter oil swaps? (Use oil forward prices in Table 8.9.) What is the total cost of prepaid 4- and 8-quarter swaps?

TABLE 8.9 Quarter Oil forward price Gas swap price Zero-coupon bond price 0.9852 0.9701 0.9913 0.9825 1 Euro-denominated zero-coupon bond price Euro forward price ($/) 5 7 8 20.2 20 19.9 19.8 2.2326 2.2753 2.2583 2.2044 0.9231 0.9075 0.8919 0.8763 0.9459 0.9367 0.9274 2 3 4 21 21.1 20.8 20.5 2.2500 2.4236 2.3503 2.2404 0.9546 0.9388 0.9735 0.9643 0.9551 0.9056 0.9115 0.9178 0.9244 0.9312 0.9381 0.9452 0.9524 TABLE 8.9 Quarter Oil forward price Gas swap price Zero-coupon bond price 0.9852 0.9701 0.9913 0.9825 1 Euro-denominated zero-coupon bond price Euro forward price ($/) 5 7 8 20.2 20 19.9 19.8 2.2326 2.2753 2.2583 2.2044 0.9231 0.9075 0.8919 0.8763 0.9459 0.9367 0.9274 2 3 4 21 21.1 20.8 20.5 2.2500 2.4236 2.3503 2.2404 0.9546 0.9388 0.9735 0.9643 0.9551 0.9056 0.9115 0.9178 0.9244 0.9312 0.9381 0.9452 0.9524