zephyranalyst

FIXED SIDE:
Payment in 90 days = 44,000
Payment in 270 days = 2,044,000

PV of payment 1 = 43,499.75
PV of payment 2 = 1,972,972.97
Total PV of fixed payments = 2,016,472.73

EQUITY SIDE:
Value = 982/985 x notional = 1,993,908.63

Value to equity side:
equity payer pays equity, receives fixed: 2,016,472.73 - 1,993,908.63 = 22,564.10

Choice "C". Anyone having trouble with swaps, i strongly recommend using my above layout. I can't be bothered using all the fractions schweser presents...