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The five-year swap rate when cash flows are exchanged semiannually is 4%. A company wants a swap where it receives payments at 4.2% per annum

The five-year swap rate when cash flows are exchanged semiannually is 4%. A company wants a swap where it receives payments at 4.2% per annum on a $10,000,000 notional principal. The OIS zero curve is flat at 3.6%. How much should a derivatives dealer charge the company? All rates are expressed with semiannual compounding. (Ignore bidoffer spreads.)

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