Firm A and B enter into a "plain vanilla swap" based on a notional value of $1,000,000. Firm A currently pays Fixed at 9%. Firm B currently pays Floating T-Bill + 3.5%. As part of the swap, Firm A will pay Firm B Floating T.-Bill + 1.5%. Firm B will pay Firm A Fixed at 10%. What is the net interest expense for Firm B?

		Floating T-Bill + 1.5%
		Fixed 9%
		Fixed 12%
		Floating T-Bill + 0.5%