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A company buys an interest rate cap on 3-month LIBOR with a cap rate of 5% per annum. The principal amount is $10 million. On

A company buys an interest rate cap on 3-month LIBOR with a cap rate of 5% per annum. The principal amount is $10 million. On a reset date, 3-month LIBOR is 5.7% per annum. What payment would this lead to under the cap?

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