Consider a 1-year quarterly pay swap with a notional principal of $10 million, a fixed rate of 4.5%, and a floating rate of 90-day LIBOR plus 150 basis points. Both payers base payments on 360-day years.

Assume that 90-day LIBOR forward rates were 3.2%, 3.6%, 3.8%, and 4% on the four swap settlement dates, respectively. On the final settlement date, the floating-rate payer will:

A	pay $20,000.

B	receive $20,000.

C	pay $25,000.

D	receive $25,000.