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Kroger wants to borrow$ 5 0 million at a fixed rate. Kroger's bank quotes a fixed rate of 7 . 1 % or a floating

Kroger wants to borrow$50million at a fixed rate. Kroger's bank quotes a fixed rate of7.1%or a floating rate of Libor+3.07%. A swap bank quotes an interest rate swap as 3.003.73 against Libor. If Kroger enters into a swap agreement, how much will Kroger send the Swap Bank if Libor=2.6%? Note: your answer should be in dollars. If on net Kroger receives money from the Swap Bank enter a negative number.

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