Compute the Payments Due in the FIRST Year on a Three-Year

Multiple Choice

Compute the payments due in the FIRST year on a three-year AMORTIZING swap from company B to company A) Company A and company B both want to borrow £1,000,000 for three years.A wants to borrow floating and B wants to borrow fixed.A and B agree to split the QSD.

A) B pays £402,114.80 to A
B) B pays £100,000 to A
C) B pays £69,788.52 to A
D) None of the above