The solution to 2.B. states the following:
"Duration of a four-year pay floating, receive fixed swap with quarterly payments = .75(4) - .125 = 2.875
Duration of a three year pay floating, receive fixed swap with semiannual payments = .75(3) - .25 = 2"
My question is, where do they get the .125 and .25 they use to subtract away from the duration of the bond? Thanks in advance!