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Find floating-rate payment in the second year

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You enter a two-year interest rate swap with annual payments and a notional principal of $100 million. At the time you enter the contract, the one-year spot rate is 3% and the two-year spot rate is 5.5%. The forward rate for the second year is 8.1%. The floating-rate payment in the second year is expected to be:

Reference no: EM133076373

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