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    A. -$1,904,762
    B. $1,904,762
    C. -$1,859,410
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    Explanation
    The swap can be valued by using the new swap rate of 5%. The investor is paying fixed and receiving LIBOR, and can effectively get out of his position by entering into a swap to receive 5% and pay LIBOR. This will leave him/her with a net cash flow of 1% for two years, ie $1m for 2 years that can be discounted to the present using the rates provided, ie =(1/1.05 + 1/(1.05

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