Calculate the net payments for each of the next three


Ms. Smith enters into a 2-year $ 10 million quarterly swap as fixed payer and will receive the index return on the S & P 500. The fixed rate is 8% and the index is currently at 986. At the end of the next three quarters the index is: 1030, 968, and 989.

Calculate the net payments for each of the next three quarters and identify the direction of the payment.

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Financial Management: Calculate the net payments for each of the next three
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