Microsoft has entered into a $100 million equity swap with a dealer. Payments will be made every six months using the adjustment 182/360 (ie. 182 days in the settlement period and 360 days in a year). Under the terms of the swaps, Microsoft agrees to pay the dealer the return on a small-cap stock index and receive a fixed rate of 6.75% from the dealer. The small-cap index starts off at 1,805.20. Six months later, it is at 1,796.15. Calculate the first payment for both parties in the swap and under the assumption of netting, determine the net payment and which party makes it.