5. A company with at $10 million loan with annual interest payments LIBOR + 4% enters into a swap contract to convert its floating rate payment to a fixed payment. Under the swap contract, the company receives $10 million*(LIBOR 1.5%) each time a loan payment is due.

a. What will the company receive on the swap if at the time a payment is due, LIBOR equals 0.5%? without excel

b. What is the companys aggregate payment on its $10 million loan and the swap contract? without excel