Firm A is paying $750 in interest payments a year, while Firm B is paying (LIBOR + 0.75%) on $10,000 loans. The current LIBOR rate is 6.5%. Both firms have agreed to swap interest payments, how much will be paid to which firm this year?

____

A) $750 to Firm B

B) $725 to Firm A

C) $25 to Firm A

D) $25 to Firm B