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Georgina Fearson is the CFO of Cambio Inc. expectes that interest rates are going to rise, so she wants to swap her future floating rate

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Georgina Fearson is the CFO of Cambio Inc. expectes that interest rates are going to rise, so she wants to swap her future floating rate interest payments for fixed rates. At present she is paying LIBOR +3.0% per annum on $1,000,000 of debt for the next 2 years, with payments due semiannually. LIBOR is currently 5.00% per annum. Ms. Fearson has just made an interest payment today, so the next payment is due six months from today. Ms. Fearson finds that she can swap her current floating rate payments for fixed payments of 12.00% per annum. (CB Solution's weighted average cost of capital is 12%, which Ms. Fearson calculates to be 6% per six month period, compounded semiannually). If LIBOR changes at the rate of 30 basis points per six month period, starting tomorrow, how much does Ms. Fearson save or cost her company during the third 6month period (n=3), by making this swap? For your answer, round to the nearest \$0.01; do not enter in \$ symbol; do not use commas to separate thousands. For example, if your answer is 7,000,050.00 then enter 7000050.00

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