Firm A is paying $750,000 in interest payments a year while Firm B is paying LIBOR plus 75 basis points on $10,000,000 loans.The current LIBOR rate is 6.5%.Firm A and B have agreed to swap interest payments.What is the net payment this year?
A)Firm A pays $750,000 to Firm B
B)Firm B pays $725,000 to Firm A
C)Firm B pays $25,000 to Firm A
D)Firm A pays $25,000 to Firm B
E)None of the above.

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The Answer of Firm A is paying $750,000 in interest payments a year while Firm B is paying LIBOR plus 75 basis points on $10,000,000 loans.The current LIBOR rate is 6.5%.Firm A and B have agreed to swap interest payments.What is the net payment this year?
A)Firm A pays $750,000 to Firm B
B)Firm B pays $725,000 to Firm A
C)Firm B pays $25,000 to Firm A
D)Firm A pays $25,000 to Firm B
E)None of the above.

Firm a Is Paying $750,000 in Interest Payments a Year