The net payment at that date will be

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Boeing has entered into a 10 year interest rate swap with Bank America with a notional principal of $500 million. Boeing has agreed to pay LIBOR – the floating rate side of the swap. Bank America has agreed to pay a fixed rate of 7%. Assume that next year, LIBOR is 7.75%. The net payment at that date will be:

A) Boeing pays Bank America $503,750,000

B) Boeing pays Bank America $3,750,000

C) Bank America pays Boeing $25,000,000

D) Bank America pays Boeing $2,500,000

E) Boeing pays Bank America $2,500,000

Reference no: EM131549426

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