A company has issued floating-rate bond with a maturity of one year, an interest rate of 3-month Libor plus 350 basis points, and a total face value of US$100 million. The company wants to hedge against rate risk by entering into an interest rate swap. A "dealer" gives you a quote in which the company would pay a fixed rate of 0.50% and receive Libor for 3 months. Interest is paid every three months and currently the Libor rate is 0.20%.

1) Calculate the net payment (including the floating rate bonus) of the company.

For all calculations, assume payments are made to the 90/360 convention.