After 180 days, the swap is marked-to-market when the 180-, 360-, and 540- day annualized LIBOR rates are 4.5%, 5%, and 6%, respectively. The present value factors, respectively, are 0.9780, 0.9524, and 0.9174. What is the market value of the swap per $1 notional principal, and which of the two counterparties (the fixed-rate payer or the fixed-rate receiver) would make the payment to mark the swap to market?
(The following question is the one previous to the question that I want to ask. There may be useful information that you need in order to solve the question above)
Annualized LIBOR spot rates and the present value factors today are: Rate Present value factor 90-day LIBOR 4.2% 0.98961 180-day LIBOR 4.8% 0.97656 270-day LIBOR 5.0% 0.96386 360-day LIBOR 5.2% 0.95057 Total 3.88060 Based on a notional principal of $40,000,000, What is the annualized swap rate?