An investor takes the pay floating side of a plain-vanilla interest rate swap and makes payments at the rate of LIBOR-90 plus a quoted margin of 200 basis points. The swap fixed rate equals 5% (based on a 360 day year). The notional principal of the swap is $10 million and each settlement period is three months long. 16. If LIBOR-90 at the end of the second quarter equals 3%: A. There is no settlement payment at the end of the third quarter. B. The settlement payment at the end of the second quarter equals $200,000 C. The settlement payment at the end of the third quarter equals $50,000 17. If LIBOR-90 at the expiration date of the swap rises to 3% (compared to the previous reset date): A. The pay-floating side will make a payment. B. The pay-fixed side will make a payment. C. There will be no payment at expiration of the swap.