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The term and price of zero-coupon bonds are given in the following table: Time to maturity Price 1 .98 2 .91 3 .87 4 .83

The term and price of zero-coupon bonds are given in the following table:

Time to maturity Price 1 .98 2 .91 3 .87 4 .83 Mark enters into a deferred swap. He wants to swap the floating interest rates for a fixed interest rate during the second, third and fourth year. The level notional amount of the swap is 1000 each year. Determine the swap rate.

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