An investor enters a two-year total return swap to take on the risk in the 3-year bond X which is currently selling at par with yield 12%. The face value of the bond is $10 million. During the two years, the investor pays the l-year Libor rate plus 150 basis points every year in exchange for the total return on the bond X which makes the coupon payment annually. Now, suppose the 1-year Libor rates for year 1 and year 2 are 7.5% and 8%. At the end of two years, the yield on bond X decreases to 10%. What are the net cash flows for the investor in year 1 and in year 2? A. $300,000: S431.818 B. $300,000; $250,000 C. $600,000; -$431,818 D. $300,000; -$431,818 An investor enters a two-year total return swap to take on the risk in the 3-year bond X which is currently selling at par with yield 12%. The face value of the bond is $10 million. During the two years, the investor pays the l-year Libor rate plus 150 basis points every year in exchange for the total return on the bond X which makes the coupon payment annually. Now, suppose the 1-year Libor rates for year 1 and year 2 are 7.5% and 8%. At the end of two years, the yield on bond X decreases to 10%. What are the net cash flows for the investor in year 1 and in year 2? A. $300,000: S431.818 B. $300,000; $250,000 C. $600,000; -$431,818 D. $300,000; -$431,818