Find the Upcoming Net Payment in a Plain Vanilla Interest

Multiple Choice

Find the upcoming net payment in a plain vanilla interest rate swap in which the fixed party pays 10 percent and the floating rate for the upcoming payment is 9.5 percent.The notional principal is $20 million and payments are based on the assumption of 180 days in the payment period and 360 days in a year.

A) fixed payer pays $1,950,000
B) fixed payer pays $950,000
C) floating payer pays $1 million
D) floating payer pays $50,000
E) fixed payer pays $50,000