You are given the following spot rates: Years to Maturity 1 2 3 Spot Rate 4.00% 4.50% 5.25% You enter into a three-year amortizing interest rate swap to pay a fixed rate and receive a floating rate based on future 1-year LIBOR rates. The notional amount is 100,000 for year 1, 80,000 for year 2, and 60,000 for year 3. If the swap has annual payments, what is the fixed rate you should pay?

a)0.040

b)0.045

c)0.05

d)0.055

e)0.060

You are given the following spot rates: Years to Maturity 1 2 3 Spot Rate 4.00% 4.50% 5.25% You enter into a three-year amortizing interest rate swap to pay a fixed rate and receive a floating rate based on future 1- year LIBOR rates. The notional amount is 100,000 for year 1, 80,000 for year 2, and 60,000 for year 3. If the swap has annual payments, what is the fixed rate you should pay? You are given the following spot rates: Years to Maturity 1 2 3 Spot Rate 4.00% 4.50% 5.25% You enter into a three-year amortizing interest rate swap to pay a fixed rate and receive a floating rate based on future 1- year LIBOR rates. The notional amount is 100,000 for year 1, 80,000 for year 2, and 60,000 for year 3. If the swap has annual payments, what is the fixed rate you should pay