Firms A and B have entered into an interest rate swap. On the first payment date, Firm A owes Firm B 12 percent of $10 million, and Firm B owes Firm A 14 percent of $10 million. Most likely, this transaction will be settled in what manner?

a. Firm A will send Firm B $1, 200,000 and Firm B will send Firm A $1,400,000.

b. Firm B will send Firm A $1,200,000 and Firm A will send Firm B $1,400,000.

c. Firm A will send Firm B $200,000.

d. Firm B will send Firm A $200,000.

answer is d. please explain why.