e final payment. The right hand side contai ns the present value of the fixed payments received (equal to t he coupon rate) and the present value of the floating payments of Libor less the spread bas ed on a notional of P. Notice the <span>similarity with the equation for the par asset swap. It can be shown that: P S S par par MVA 100 / ⋅ = Where S MVA is the MVA swap spread, S par/par is the par/par swap spread and P is the dirt y price of the bond. A simple de
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