Bill took a loan of $3000 for two years from Valley Bank at a variable interest rate. Bill will make an interest payment to the bank at the end of each year based on the 1-year spot interest rate at the start of that year and also repays$3000 at the end of 2 years. The current one-year spot rate is 3% and the 2-year spot rate is 4%.

Bill decided to enter into a two-year interest rate swap with annual settlement periods under which he will swap the variable interest rate for a fixed interest rate.

One year has passed, determine the net swap payment that will occur at the end of the second year, and state whether Bill will receive the payment or make the payment assuming that the 1-year spot interest rate today is 4.6%.