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Determine the value to the party paying fixed

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A $100 million interest rate swap has a remaining life of 8 months. Cash flows will be exchanged in two months and then again in six months. Under the terms of the swap, six-month LIBOR is exchanged for 6% per annum (compounded semiannually). The six-month LIBOR rate was 3.2% per annum four months ago. The discount rate for all maturities is 3% (based on continuous compounding). Using the following table, determine the value to the party paying fixed and to the party paying ?oat?

Reference no: EM133074666

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