I have gone all through volunruud and the sword is not in the crypt where it is supposed to be
I have the axe placed in the door but the sword is nowhere to be found

Ya, its a odd bug. Try this console command if you are on PC:

player.additem 0008ffdf 1

If you are on console, it is a known bug that if you put in a weapon first when you don't have the other, it breaks the quest.

Haven't experienced that but if you're doing the quest "http://elderscrolls.wikia.com/wiki/Silenced_Tongues" then click the link and go read at the bottom page regarding the bugs w/c might solve your problem. Hope this helps.

I think some draugr is carrying the Ceremonial Sword, and when using Fireball against them, I tend to blast the sword all over the place. Make sure that quest (Silenced Tongues) is active, and the arrow will point you to the sword, even if it's on the floor.