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ACME Real Estate Developers has $100 million in a floating rate construction loan at LIBOR plus 2.0%. The forecast is for rising interest rates and

ACME Real Estate Developers has $100 million in a floating rate construction loan at LIBOR plus 2.0%. The forecast is for rising interest rates and the borrower is seeking an interest rate swap on the loan with LIBOR at 2.5%. If LIBOR is expected to rise .25% per year, what will be the interest received in year three under the swap?

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