ye 2 year .15 3 year .20 (i) Find the net swap payment made at the end of the second year in each of part (a), assuming a notional amount of $1,000,000. (ii) Find the market value of the swap to the payer at the start of the second year in each of (a), (b) and (c) 8.3 Determine the swap rate for a three-year swap based on the term structure given in Exercise 8.2. (ii) Calculate the present value at the time the swap is begun of the swap rate payments made by the payer in (i). (iii) Using the swap in Exercise 8.1(a) and the term structure one year later given in Exercise 8.2, calculate the present value of the remaining swap rate payments at the beginning of the second year of the swap in 8.1(a). (iv) Verify that the present value on (ii) minus the present value in (iii) is the market value of the 8.1(a) swap found in 8.2(ii). ye 2 year .15 3 year .20 (i) Find the net swap payment made at the end of the second year in each of part (a), assuming a notional amount of $1,000,000. (ii) Find the market value of the swap to the payer at the start of the second year in each of (a), (b) and (c) 8.3 Determine the swap rate for a three-year swap based on the term structure given in Exercise 8.2. (ii) Calculate the present value at the time the swap is begun of the swap rate payments made by the payer in (i). (iii) Using the swap in Exercise 8.1(a) and the term structure one year later given in Exercise 8.2, calculate the present value of the remaining swap rate payments at the beginning of the second year of the swap in 8.1(a). (iv) Verify that the present value on (ii) minus the present value in (iii) is the market value of the 8.1(a) swap found in 8.2(ii)