question archive To find the swap rate for a 3-year swap you would 1) Take the arithmetic average of the 1-, 2-, and 3- year forward rates 2) None of the options 3) Bootstrap the LIBOR yield curve 4) Take the geometric average of the 1-, 2-, and 3- year forward rates
To find the swap rate for a 3-year swap you would 1) Take the arithmetic average of the 1-, 2-, and 3- year forward rates 2) None of the options 3) Bootstrap the LIBOR yield curve 4) Take the geometric average of the 1-, 2-, and 3- year forward rates
Subject:FinancePrice: Bought3
To find the swap rate for a 3-year swap you would
1) Take the arithmetic average of the 1-, 2-, and 3- year forward rates
2) None of the options
3) Bootstrap the LIBOR yield curve
4) Take the geometric average of the 1-, 2-, and 3- year forward rates
