123, Inc has entered into a "plain-vanilla" interest rate swap on $10000000 notional principal. 123 company receives a fixed rate of 6.5 percent on payments that occur at monthly intervals. Platteville Investments, a swap broker, negotiates with another firm, PPS, to take the pay-fixed side of the swap. The floating rate payment is based on LIBOR ( currently at 4.8 percent). At the time of the next payment (due in exactly one month), 123, Inc will:()
A. receive net payments of $42500.
B. receive net payments of $14167.
C. pay the dealer net payments of $14167.
