On January $1,$ V Corporation inve with interest receivable quarterly.

S$200\mathrm{.}000,$ the year. $10\%$ notes intly entered into a two year interest

rate swap agreement on January $1.$ and designated the swap as a fair value hedge The agreement called V to make payment based on a $10\%$ foxer interest rate on a notional amount of $$200,000$ and to receive interest based on a floating interest. rate. The contract called for cash settlement of the net interest amount quartere Floating settlement rates were $10\%$ at January $1,8\%$ at March $31,$ and $6\%$ June $70$

The rates are reset in arrears. The fair values are as follows:

January $1$

$30$

Fair value of interest rate swap

$$12,000$

Fair value of the investment in notes

$$212,000$

$$200,000$

March $31$

$$6,200$

$$206,200$

June

What will the net effect of V$\text{'}$s note and swap transactions be on March $31?$