Company X and Company Y enter into an interest rate swap contract to swap fixed for floating interest rates for a notional amount of $500,000. The term of the interest rate swap is two years and the interest payments will be swapped every six months. The fixed rate on the swap is 4.75%, while the floating rates on the swap are as follows:

6-Month LIBOR
Now	4.50%
6-months from now	4.70%
12-months from now	4.90%
18-months from now	5.10%

What is the net payment that will be exchanged by the two counterparties in 18 months?

$125

$625

-$375

-$875