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Firm V is paying a fixed 7% in interest payments on $10,000,000 loans, while Firm W is paying LIBOR plus 50 basis points on $10,000,000

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Firm V is paying a fixed 7% in interest payments on $10,000,000 loans, while Firm W is paying LIBOR plus 50 basis points on $10,000,000 loans, Firm V and Whave agreed to swap interest payments. If the current LIBOR rate is 7%, how much will be paid to which Firm this year? Firm V pays $50,000 to Firm W Firm V pays $25,000 to Firm W Firm W pays $50,000 to Firm V Firm W pays 25,000 to Firm V

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