Company A enters into an interest rate swap with Bank B for a notional amount of $1 million. At the beginning of the swap, the quarterly LIBOR is 5% p.a. and Bank B quotes 4% p.a. (bid) and 6% p.a. (ask) fixed rates against the quarterly LIBOR. Company A wants to swap out of its floating rate (LIBOR) debt and into fixed rate debt. In the first quarter, the interest payment of Company A is: Select one: A. $12,500 B. $60,000 C. $40,000 D. $15,000 E. $10,000