When pricing a fixed leg of a swap using the yield curve, which statement is correct?

When pricing a fixed leg of a swap using the yield curve, which statement is correct?

• A. PV equals Notional times fixed rate times total year fraction.
• B. PV of fixed leg is the sum over accrual periods of fixed rate times period length times the discount factor for that period; equivalently use par-swap curve to price.
• C. PV fixed equals PV floating.
• D. PV fixed is independent of the discount factors.

Answer: (B)