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The discount factors for maturities of 1, 2 and 3 years are 0.98, 0.95 and 0.91, respectively. You obtained a swap contract one year ago,
The discount factors for maturities of 1, 2 and 3 years are 0.98, 0.95 and 0.91, respectively. You obtained a swap contract one year ago, calling for the delivery of 10 kg of gold every year for a period of 3 years. The swap rate on that contract is $100 per kg. What is todays value of your swap contract? Please show your calculation.
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