A credit default swap requires a semiannual payment at the rate of 1.6 basis points per year. The principal is $2 million and the credit default swap is settled in cash. A default occurs after three years and three months, and the calculation agent estimates that the price of the cheapest deliverable bond is 30% of its face value shortly after the default. Calculate the total amount paid by the protection buyer given the information provided above? Choose the best answer. a. None of the other answers provided is correct b. Protection buyer pays: $ 1040 c. Protection buyer pays: $ 160 d. Protection buyer pays: $ 960