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You are given the following table of spot rates: Spot Rate 1 13.1 3.396 3.8% 9 4.206 4.76 Lillian enters into a deferred swap with

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You are given the following table of spot rates: Spot Rate 1 13.1 3.396 3.8% 9 4.206 4.76 Lillian enters into a deferred swap with settlement at the end of the year. She wants to swap the floating interest rates for a fixed interest rate during the third and fourth year. Given a notional amount of 100.000 in years 3 and 4, determine the deferred swap rate. Possible Answers 3.9% B 4.1% 4.3% D 4.9% 5.1%

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