Determine the swap rate, Construct a one-year deferred,

Determine the swap rate

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Reference no: EM132056026

The term structure for (annual effective) interest rates is as follows for corresponding maturities:

1 year: 5%, 2 year: 10%, 3 year: 15%, 4 year: 20%

Construct a one-year deferred, two-year swap. Determine the swap rate.

Reference no: EM132056026

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