The term structure of interest rates has the following annual effective rates of interest for zero-coupon bonds.

Maturity ____Annual Effective Yield on Zero-Coupon Bond

1 year ______6%

2 years ____6.5%

3 years ____6.75%

4 years ____7%

For an interest only loan, find the level interest payment at the end of each year for 4 years that has the same present value as the forward rate payments at the ends of each of the 4 years. That is, determine the fixed swap interest rate for this floating term structure of interest rates.