You enter into a deferred interest rate swap with a notional of $5 million that starts two years from now and matures five years from now. You receive floating payments based on one-year LIBOR and pay a fixed payment annually with the first payment due in three years. Below, you are given prices of zero coupon bonds based on LIBOR spot rates. Years to Maturity 1 2 3 4 5 Zero-coupon Bond Price 0.987 0.960 0.935 0.901 0.858 What is the annual fixed payment that you will make on the swap

The business cycle is the periodic but irregular up-and-down movement in economic activity, measured by fluctuations in real gross domestic product (gdp) and other macroeconomic variables. a business cycle is typically characterized by four phases—recession, recovery, growth, and decline—that repeat themselves over time. economists note, however, that complete business cycles vary in length. the duration of business cycles can be anywhere from about two to twelve years, with most cycles averaging six years in length. some business analysts use the business cycle model and terminology to study and explain fluctuations in business inventory and other individual elements of corporate operations. but the term "business cycle" is still primarily associated with larger (industry-wide, regional, national, or even international) business trends.

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