When pricing a simple fixed leg of an interest rate swap with a notional and yield curve, which describes the present value?

When pricing a simple fixed leg of an interest rate swap with a notional and yield curve, which describes the present value?

• A. PV of fixed leg = sum over accrual periods fixed rate times period length times the discount factor for that period; equivalently use par-swap curve to price.
• B. PV fixed = Notional times fixed rate.
• C. PV fixed depends only on the first period's discount factor.
• D. PV fixed is always equal to PV floating.

Answer: (A)