Question 12

A borrower with a loan of $1,000,000 and variable interest has added a collar. The cap in the collar has rate of 8% and the floor has a rate of 2%. The payment frequency is 90 days. What will be the borrowers first interest payment, including cash flows from the collar, if the (annualized) interest rate for the next 90 days is 6%?

Round your answer to the nearest integer and include a negative sign for the interest payment.