Скачать или смотреть SOA/FM SAMPLE QUESTION

197.
Katarina has borrowed 300,000 from Trout Bank. Katarina will repay 100,000 of principal at the end of each of the first three years.
Katarina will pay Trout Bank a variable interest rate equal to the one year spot interest rate at the beginning of each year.
Katarina would like to have a fixed interest rate so she enters into an interest rate swap with Lily. Under the interest rate swap, Katarina will pay a fixed rate to Lily, and Lily will pay a variable rate to Katarina. The variable rate will be the same rate that Katarina is paying to Trout Bank. The other terms of the swap will mirror the loan that Katarina has.
You are given the following spot interest rates:
Time(t)
1 2 3 4 5
SpotRate(rt )
4.3% 4.6% 5.1% 5.4% 5.6%
Calculate the swap interest rate for Katarina’s swap.
A. 4.27%
B. 4.52%
C. 4.78%
D. 5.07%
E. 5.31%