What is big unknown that is used to determine terms of swap
Problem
The swap is priced such that the NPV of both legs is the same at trade inception. What is the big unknown that is used to determine the terms of the swap? i. State what it is qualitatively. ii. Then, tell what it is quantitatively.
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What is the big unknown that is used to determine the terms of the swap? State what it is qualitatively. Then, tell what it is quantitatively.
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