Which do you prefer: a bank account that pays 4.4 % per year (EAR) for three years or a. An account that pays 2.2 % every six months for three years? b. An account that pays 8.3 % every 18 months for three years? c. An account that pays 0.36 % per month for three years? (Note: Compare your current bank EAR with each of the three alternative accounts. Be careful not to round any intermediate steps less than six decimal places.)

A$100 million interest rate swap has a remaining life of 10 months. under the terms of the swap, the six-month libor is exchanged semi-annually for 12% per annum. the six-month libor rate in swaps of all maturities is currently 10% per annum with continuous compounding. the six-month libor rate was 9.6% per annum two months ago. what is the current value of the swap to the party paying floating? what is its value to the party paying fixed?