What is the current value of the swap to the party paying


A $100 million interest rate swap has a remaining life of 10 months. under the terms of the swap, 6-month LIBOR is exchanged for 7% per annum (compounded semiannually). the average of the bid-offer rate being exchanged for 6-month LIBOR in swaps of all maturities is currently 5% per annum with continuous compounding. the 6-month LIBOR rate was 4.6% per annum 2 months ago. What is the current value of the swap to the party paying floating?

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Financial Management: What is the current value of the swap to the party paying
Reference No:- TGS02839539

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