10.bbotson Corporation just issued $200m debt with 8% coupon rate, so it has to pay bond holders $16m of interest expense every year. The company expects future rates to go down, so the company wants to enter a swap (pay floating, received fixed) contract Ibbotson enters a swap contract with Commercial Bank. The swap has a notional principal amount of $200 million and calls for lbbotson to make annual floating interest rate payment of LIBOR plus 0.75% to Commercial Bank. In return, commercial Bank pays fixed 8% interest rate to Ibbotson. when both parties enter the swap, LIBOR-7.25% (a) What is the net payment per year at the time both parties enter the swap? (b) If one year later, LIBOR declines to 7%, what is the net payment per year? (c) If one year later, LIBOR increases to 7.75%, what is the net payment per year