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  3. ryan borrowed $2,300 in year 1 and an additional $

Ryan borrowed $2,300 in year 1 and an additional $1,600 in year 2 for a...

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Ryan borrowed $2,300 in year 1 and an additional $1,600 in year 2 for a total of $3,900. The 1-year spot rate is 3% and the 2-year spot rate is 4%. Under the loan, the interest rate resets annually to the 1-year spot interest rate. Ryan entered into a 2-year interest rate swap to pay the fixed interest rate and receive the variable rate. The notional amount of the swap matches the notional amount of the loan. Determine the level swap rate R

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