Question 3 (7 points) Suppose a bank buys an interest rate floor that has these terms: the floor will last for 3 years; payment is annually, the floor rate is 4.7%; and the notional amount is $20 million. What would the writer of this floor pay if the LIBOR were 5,45%? 1.14 million SO,05 million $1.09 million Question 3 (7 points) Suppose a bank buys an interest rate floor that has these terms: the floor will last for 3 years; payment is annually, the floor rate is 4.7%; and the notional amount is $20 million. What would the writer of this floor pay if the LIBOR were 5,45%? 1.14 million SO,05 million $1.09 million