You sell a two-year interest rate swap with annual payments and notional principal of $100 million. At the time you enter the contact, one-year spot rate is 3% and the two-year spot rate is 5.5%. Forward rate for the second year is 8.1%. Find the way to calculate the present value of the floating-rate payments

a. $3/1.03 + $5.5/(1.055)

b. $3/1.03 + $8.1/(1.081)2

c. $3/1.03 + $5.5/(1.081)

d. $3/1.03 + $8.1/(1.055)2