ABC Bank negotiates a plain vanilla swap in which it makes fixed-rate payments of 1.6% and receives floating-rate payments, with the floating rate set at LIBOR + 0.4%. The notional principal is $117mln. LIBOR at the end of Year 1 is 1.62%. What is the net payment ABC Bank will receive (+) or make (-) in Year 1, in $ million, to the nearest $0.001 min? Answer Key: 0.491 Feedback: Net pmt = Notional principal x (rate received - rate paid). Remember to add the spread to LIBOR to get the floating rate