114. Company XYZ has a $40 million, 3-year debt on which it pays a fixed rate of interest at 7.6% p.a. As it is expecting rates to drop significantly over the coming few years it enters into a swap contract with a fixed leg of 4.0% p.a. and a floating leg at 90-day LIBOR + 1.8% p.a. The notional value of the swap contract is $40,000,000 and it is based on a 360-day year. If LIBOR on Day 360 is 1.3% p.a., which of the following statements is least correct? The 90-day LIBOR rate on Day 360 corresponds with a swap payment:

     1. of $690,000.

     2. made on Day 450.

     3. to Company XYZ.