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Use the following table to answer questions 1-2 Year 1 2 3 4 Oil forward price (in $) 21.1 20.5 20 19.8 Gas swap price

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Use the following table to answer questions 1-2 Year 1 2 3 4 Oil forward price (in $) 21.1 20.5 20 19.8 Gas swap price (in $) 2.4236 2.2404 2.2326 2.2044 Zero-coupon bond price (in $) 0.9701 0.9388 0.9075 0.8763 2. Given a 4-year oil swap price of $20.43, construct the implicit loan balance for each quarter over the life of the swap. (Remember, swaps are nothing more than forward contracts coupled with borrowing and lending money) Use the following table to answer questions 1-2 Year 1 2 3 4 Oil forward price (in $) 21.1 20.5 20 19.8 Gas swap price (in $) 2.4236 2.2404 2.2326 2.2044 Zero-coupon bond price (in $) 0.9701 0.9388 0.9075 0.8763 2. Given a 4-year oil swap price of $20.43, construct the implicit loan balance for each quarter over the life of the swap. (Remember, swaps are nothing more than forward contracts coupled with borrowing and lending money)

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