A company has fixed rate debt and enters a receive fixed$/$pay variable swap. Interest expense equals:

Select one:

a$.$

The fixed rate interest adjusted for amounts reclassified from other comprehensive income

b$.$

The variable rate interest adjusted for amounts reclassified from other comprehensive income

c$.$

The variable rate interest adjusted for the net cash paid to or received from the intermediary

d$.$

The fixed rate interest adjusted for the net cash paid to or received from the intermediary