Assume that the Bank of Topeka anticipates that interest rates will increase over the next several years and decides to hedge the interest rate risk on its portfolios by purchasing a three-year interest rate collar, which uses LIBOR as the index used to represent the prevailing interest rate. The interest rate cap specifies a fee of 3 percent of notional principal valued at $90 million with an interest rate ceiling of 8 percent. The interest rate floor specifies a fee of 3 percent of notional principal valued at $90 million and an interest rate floor of 8 percent.

Assume that the Bank of Topeka anticipates that interest rates will increase over the next several years and decides to hedge the interest rate risk o its portfolios by purchasing a three-year interest rate collar, which uses LIBOR as the index used to represent the prevailing interest rate. The interes rate cap specifies a fee of 3 percent of notional principal valued at $90 million with an interest rate ceiling of 8 percent. The interest rate floor specifi a fee of 3 percent of notional principal valued at $90 million and an interest rate floor of 8 percent. Given this information, fill in the table that follows. End of Year Information 0 1 2 3 Purchase of Interest Rate Cap LIBOR 6% 10% 13% Interest Rate Ceiling 8% 8% 8% LIBOR's Percent above the Ceiling 0% 2% 5% Payments Received $ $ Fee Paid Sale of Interest Rate Floor Interest Rate Floor 8% 8% 8% LIBOR's Percent below the Floor 2% 0% 0% Payments Made $ $ $ Fee Received Given the information filled out in the table, the Bank of Topeka's profit form the transaction after the three-year period is