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You wish to hedge against interest rate changes so you enter into a swap contract with another party for the next ten years based on
You wish to hedge against interest rate changes so you enter into a swap contract with another party for the next ten years based on the term structure shown to the right, and the notional amount shown below. Notional a b) Determine the fixed rate for the contract such that the swap has a value of zero at the signing of the contract. You wish to hedge against interest rate changes so you enter into a swap contract with another party for the next ten years based on the term structure shown to the right, and the notional amount shown below. Notional a b) Determine the fixed rate for the contract such that the swap has a value of zero at the signing of the contract
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