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With an original maturity of 5 years, an interest rate swap today has 2 years to go. The present value of the fixed-rate payments for
With an original maturity of 5 years, an interest rate swap today has 2 years to go. The present value of the fixed-rate payments for the remainder of the term of the swap is $910,000. The present value of the floating-rate payments for the remainder of the swap is $710,000. What is the value of this swap to the buyer? ____
A) -$200,000
B) $710,000
C) $910,000
D) $200,000
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