BOA issues $200m in CMO. 40% of the issue is floater tranche with index = LIBOR (currently 1.5%) and margin = 2%. The remaining 60% is inverse floater tranche that is designed to keep the total cost of financing constant. The next year LIBOR goes up to 3%. What would be the interest paid to the invese floater tranche investors? Enter your answer in percent, but without percent sign.

0.5%

3.5%

1.5%

2.5%

4.5%