The Six-Month LIBOR Rate for a Reference Period Is 7

The six-month LIBOR rate for a reference period is 7% (annualized) .The fixed six-month coupon rate for the same period is 4%.Compute the payment to the floating-rate payer if the notional principal is $200 million.

A) $0.5 million
B) $0.6 million
C) $0.85 million
D) $1 million
E) $0.9 million