Did anyone find that they thought the answer to this question was incorrect?
I think it is wrong because in the answer provided, annualized rates are used to calculate the value of the SWAP, when in all the descriptions/problems in the text non-annualized rates are always used to calculate the value of the swap after a period of time has passed.
Any thoughts from the swap gurus? I have little understanding of this, but just follow the methodology as provided in the text.
