Explain the pricing of equity swaps, and work out their no-arbitrage value and say what it means

An equity swap trades an equity return for a fixed rate, a floating rate or another equity return. Its fixed rate equals the plain interest rate swap rate for the same dates: (1 − final discount factor) ÷ sum of discount factors, because the equity leg resets to notional at each settlement. Between resets, the equity receiver values its leg as (current index level ÷ level at last reset) × notional, and the fixed leg as a fixed-coupon bond including the notional at maturity, discounted at current rates. Value to the equity receiver is the equity leg less the fixed bond. The trap is valuing the fixed leg at par or forgetting the notional in it.