Swap from the perspective of the fixed-rate payer

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An interest-rate swap had an original maturity of five years. Today, the swap has two years to maturity. The present value of the fixed-rate payments for the remainder of the term of the swap is $910,000. The present value of the floating-rate payments for the remainder of the swap is $710,000.

a. What is the value of this swap from the perspective of the fixed-rate payer?

b. What is the value of this swap from the perspective of the fixed-rate receiver?

Reference no: EM131787291

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