Exercise 17-25 On January 2, 2017, Grouper Company issues a 5-year, $7,800,000 note at LIBOR, with interest paid annually. The variable rate is reset at the end of each year. The LIBOR rate for the first year is 4.90%. Grouper Company decides it prefers fixed-rate financing and wants to lock n a rate of 5%. As a result, Grouper enters to an interest rate swap to a 5% ed and ei e LBR based on $7,800,000. The variable rate is reset to 5.70% on January 2, 2018 (a) Compute the net interest expense to be reported for this note and related swap transactions as of December 31, 2017 Net interest expense December 31, 2017 (b) Compute the net interest expense to be reported for this note and related swap transactions as of December 31, 2018. Net interest expense December 31, 2018