Firm A is paying $750,000 in interest payments a year while Firm B is paying LIBOR plus 75 basis points on $10,000,000 loans. The current LIBOR rate is 6.5%. Firm A and B have agreed to swap interest payments. What is the net payment this year?

a.) Firm B pays $25,000 to Firm A

b.) Firm B pays $725,000 to Firm A

c.) Firm A pays $750,000 to Firm B

d.) Firm A pays $25,000 to Firm B