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On March 4 of 1999, XYZ Corporation takes out a $1 million loan. The company pays the interest semiannually. The six-month interest rate is six-month

On March 4 of 1999, XYZ Corporation takes out a $1 million loan. The company pays the interest semiannually. The six-month interest rate is six-month LIBOR + 80 basis points, with a cap at 9.25%. Assume that LIBOR is at 8.5% on March 4, 1999, and 7.75% on September 4, 1999. What is the first interest payments on the loan?

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