Determine the price of the swap from corporation viewpoint

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Reference no: EM132046978

A corporation enters into a five-year interest rate swap with a swap bank in which it agrees to pay the swap bank a fixed rate of 9.75 percent annually on a notional amount of 15,000,000 and receive LIBOR. As of the second reset date (assume annual reset), determine the price of the swap from the corporation's viewpoint assuming that the fixed-rate side of the swap has increased to 10.25 percent (for a 3 year swap)

Reference no: EM132046978

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