Firm XYZ enters into an interest rate swap with a dealer in which it pays a floating rate of LIBOR on a notional amount of $50,000,000 with semiannual payments based on 30-day months and a 360-day year. In turn, it will receive a semiannual payment based on the same $50,000,000 notional amount and 30-day months and 365-day years but calculated using a fixed rate of 4.5 percent. Suppose that the LIBOR rate is 4.0% at the beginning of the swap. The net payment to firm XYZ at the first settlement six months into the swap would be:

		$102,740
		$104,452
		$106,164
		$107,877
		$109,589