what level is this in the fair value heirarchy, Instrument 5 Interest Rate Swap In January 20X0, NCB executed a plain-vanilla over-the-counter (OTC) fixed-for-float interest rate (IR) swap as an economic hedge of its cash flow variability to changes in the London Interbank Offered Rate (LIBOR) on its seven-year variable-rate term note. The terms of the IR swap require NCB to pay a fixed rate and receive a floating rate (threemonth LIBOR). The IR swap net cash settles on a quarterly basis. If the fixed rate exceeds the floating rate, NCB makes a net payment to the counterparty, and if the floating rate exceeds the fixed rate, NCB receives a net payment from the counterparty. As of the measurement date (December 31, 20X1), the remaining life of the IR swap was six years. NCB uses an income approach (i.e., a discounted cash flow model), which is widely accepted for valuing IR swaps. Key inputs into the valuation model are the LIBOR yield curve and an adjustment, if any, for nonperformance risk, which is the risk that a party to the contract will not satisfy its obligation (also known as a credit valuation adjustment (CVA)). NCB obtained a quoted LIBOR