hiWhat are the simplest answers to these questions? 1. Consider an Interest Rate Swap, assuming the discount factor curve, D(T), is available for all maturities T, how would you value the fixed leg?2. Similarly, how would you value the floating leg?3. Given the discount factor curve, what would be the fair rate for an FRA maturing in one year, with 6 months tenor, in the USD market?Thanks

for the constant leg its just a coupon bond calculation. Let D(0,T) be the discount factor for T -Maturity. Discount each cahs flow to 0 ans sum up.- its a fixed leg.For floating leg. You know the spot rate.If u assume no arbitarage condition. than you disount the first cash flowand the Notional to 0. That will be your float leg.

for the constant leg its just a coupon bond calculation. Let D(0,T) be the discount factor for T -Maturity. Discount each cahs flow to 0 ans sum up.- its a fixed leg.For floating leg. You know the spot rate.If u assume no arbitarage condition. than you disount the first cash flowand the Notional to 0. That will be your float leg.

Starting very basic:First you should have forward curve available. Using the forward curve you will calculate coupons. Discount them using the discount curve. Second, solve for a fixed rate that equates sum of discounted fixed coupons with the sum of discounted floating coupons calculated in the first step. hiWhat are the simplest answers to these questions? 1. Consider an Interest Rate Swap, assuming the discount factor curve, D(T), is available for all maturities T, how would you value the fixed leg?2. Similarly, how would you value the floating leg?3. Given the discount factor curve, what would be the fair rate for an FRA maturing in one year, with 6 months tenor, in the USD market?Thanks