Capital One Bank enters into a $10,000,000 quarterly-pay plain-vanilla interest rate swap as the fixed rate payer at a swap rate of 6% based on a 360-day year. The floating-rate payer, First Bank, agrees to make payments at 90-day LIBOR plus a 0.6% margin. 90-day LIBOR currently stands at 4%. LIBOR-90 rates are as follows: 90 days from today = 4.5% 180 days from today = 5.1% 270 days from today = 5.6% 360 days from today = 6.0% 1. Which of the following statements regarding the payments made at the inception of the swap is most accurate? A. Capital One Bank will pay First Bank $10 million. B. First Bank will pay Capital One Bank $10 million. C. No amount will be exchanged at the inception of the swap. 2. The floating rate used to determine the settlement payment 90 days from today is closest to: A. 4.5% B. 5.1% C. 4.6% 3. After 180 days, First Bank will most likely: A. Pay $7,500 B. Receive $37,500 C. Receive $22,500 4. After 270 days, Capital One Bank will most likely: A. Pay $7,500 B. Receive $22,500 C. Receive $5,000 5. After 360 days, First Bank will most likely: A. Pay $10,000 B. Pay $15,000 C. Pay $5,000