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Business, 27.04.2021 15:00 GreenHerbz206

You enter into a deferred interest rate swap with a notional of $5 million that starts two years from now and matures five years from now. You receive floating payments based on one-year LIBOR and pay a fixed payment annually with the first payment due in three years. Below, you are given prices of zero coupon bonds based on LIBOR spot rates. Years to Maturity 1 2 3 4 5 Zero-coupon Bond Price 0.987 0.960 0.935 0.901 0.858 What is the annual fixed payment that you will make on the swap

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