Use the Zero-Coupon Bond Prices Given in the Following Table

question 14

Multiple Choice

Use the zero-coupon bond prices given in the following table to answer the questions that follow.
-Consider a newly issued three-year swap receiving floating paying fixed with principal $10 million dollars,paying the one-year swap rate yearly,and receiving the one-year floating spot rate yearly.What is the value of the swap when it is issued?

• A) $300,335
• B) $341,335
• C) - $300,335
• D) - $341,335
• E) $0

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