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You would like would like to swap the uneven payments (note that the payments are $3 in year 1, $3 in year 2, and $103
You would like would like to swap the uneven payments (note that the payments are $3 in year 1, $3 in year 2, and $103 in year 3) associated with the bond described in (5) for payments of equal amounts in 1 year, in 2 years, and in 3 years.Assuming you can find a swap counterparty who offers you a fair deal (and that interest rates are unchanged from those described in (5)), what is closest to the swap rate amounts will you receive in each year as a result of the swap?
a.$32.00
b.$34.00
c.$36.00
d.$38.00
e.$40.00
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