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A different problem with different information without - yeild% per annum given Chrysler LLC, the now privately held company sold-off by DaimlerChrysler, must pay floating

A different problem with different information without - yeild% per annum given

Chrysler LLC, the now privately held company sold-off by DaimlerChrysler, must pay floating rate interest three months from now. It wants to lock in these interest payments by buying an interest rate futures contract. Interest rate futures for three months from now settled at 93.388.

In three months time Libor settles at 5.895% in the spot rate.

What is the dollar amount Chrysler will pay (or recieve) to settle this transaction three months from now? (Recall, the notional amount for this type of contract is $1,000,000.)

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