# Interest rate swap

Using the following data, calculated the fixed-rate payer's first two net quarterly payments/receipts for a hypothetical rate swap described below:

Notional Principal $10 million

Fixed Rate 7.0%

Days in first quarter 91

Days in second quarter 92

Current LIBOR (LIBOR0) 5.0%

Expected LIBOR (LIBOR1) 5.3%

Expected LIBOR (LIBOR2) 4.8%

https://brainmass.com/business/interest-rates/fixed-rate-payments-interest-rate-swaps-7352

#### Solution Summary

The solution provides calculations for calculating the fixed rate payments in the case of interest rate swaps

$2.19