Ronald's Company Enters a 3-Year, $10,000 Plain Vanilla Interest Rate

question 4

Essay

Ronald's company enters a 3-year, $10,000 plain vanilla interest rate swap and agrees to pay LIBOR and receive a fixed rate of 5%.Payments are to be exchanged every six months.Determine the semi-annual payments that Ronald must receive, assuming LIBOR has the following values for each six-month period beginning now: 5%, 5.5%, 6%, 4.75%, 4.25%, 4%.