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On $10 million of loans, Firm X is paying a fixed $700,000 in interest payments while Firm Y is paying LIBOR plus 50 basis points.

On $10 million of loans, Firm X is paying a fixed $700,000 in interest payments while Firm Y is paying LIBOR plus 50 basis points. The current LIBOR rate is 6.25%. Firms X and Y have agreed to swap interest payments. How much will be paid to which firm this year?

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