er at the maturity of the swap. The formula which must be solved for the MVA asset swap spread is: ∑∑ == ⋅+⋅⋅−⋅=⋅− floatfix n i iii n i i tdfSLa P tdfCTdfP 11 )()( 100 )()()100( Where P is the p<span>rice of the bond paid, df(t) is the discount factor to time, t, T is the maturity of the bond, L is the Libor setting, and S is the MVA swap spread. The left hand side is the present value of the final payment. The right hand side contains the present value of the fixed payments received (equal to the coupon rate) and the pres
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