Find approximate fixed rate on a four-year plain-vanilla

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Reference no: EM132689028

The following discount factors are observed:

Tenure in Years= 1, Discount Factor= 0.9804

Tenure in Years= 2, Discount Factor=0.9495

Tenure in Years=3, Discount Factor=0.9210

Tenure in Years=4, Discount Factor=0.8841

What is the approximate fixed rate on a four-year plain-vanilla interest rate swap?

a. 1.525%

b. 2.75%

c. 3.10%

d. 2.15%

Reference no: EM132689028

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