Good Afternoon!

Could you please help explain this derivatives finance question to me? Thanks!

You enter a 1-year pay-fixed receive floating interest rate swap with semi-annual payments on a notional principal of $35 million where the swap fixed rate is 4.24% and the current term structure of interest rates is below based on a 360-day year. The first net payment will be closest to

L0(180)=0.0330

L0(360)=0.0430

A) 164,500

B) 742,000

C) 577,500