Francis has a 3-year loan of 100,000 that he repays by making interest payments to the bank at the end of each year, paying off the principal with interest at time 3. The annual effective interest rate charged by the bank is LIBOR plus 0.6%. Francis decided to enter into an interest rate swap with annual settlement periods, at a notional amount of 100,000, under which she makes annual payments at a fixed annual effective interest rate of 4% in exchange for receiving annual payments at the annual effective LIBOR rate plus 0.2% Compute the net interest payment that Francis makes in the third year if the annual effective LIBOR rate is 3.1%, 3.5%, and 3,8% in the 1st, 2nd, and 3rd year, respectively, Poble Answers 4150 4250 4300 D 4400 E4500