# Using the following data, calculate the fixed-rate payer's first two net quarterly payments/receipts for a hypothetical interest rate swap

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

Notional principal $10 million

Fixed rate 7.00%

Days in first quarter 91

Days in second quarter 92

Current LIBOR (LIBOR0) 5.00%

Expected LIBOR (LIBOR1) 5.30%

Expected LIBOR (LIBOR2) 4.80%

Please help me with the formula to obtain the answer.

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This solution assists in determining a quarterly payment for an interest rate swap.

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The fix rate payer in a swap deal will always pay at the fixed rate. ...

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