CFA Book IV, Reading 35, Question 4
I have a few questions regarding end of chapter No. 4 and were hoping someone can clarify:
1) They come up with two interest rates in the answer: 1.070024 and 1.08007. Does anyone know how they derive those?
2) In the question they state “suppose you are the fixed rate payer in the swap”. But the answer contains the statement “… receive a fixed payment of…”
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