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3, Wilson Bank loaned $20 million to a customer for 4 years at an interest rate-LIBOR 290. At the same time Wilson Bank bought a

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3, Wilson Bank loaned $20 million to a customer for 4 years at an interest rate-LIBOR 290. At the same time Wilson Bank bought a 4-year floor on LIBOR at a strike rate of 5%. LIBOR on the loan and floor are both based on LIBOR at the beginning of each year. Suppose at the beginning of year 1, LIBOR-6%. What is Wilson's net interest revenue on the loan for year one? A) $400,000 B) $1,000,000 C) $1,200,000 D) $1,400,000 E) S1,600,000

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