Question $4$

$0\mathrm{.}5$ pts

Company A borrowed $$100,000$ and agreed to pay floating$-$rate interest payments to the bank. Company A later entered into an interest$-$rate swap to change the rate from a floating rate to an $6\%$ fixed rate. The first year's floating$-$rate was $4\%.$ What is the final interest expense balance at the end of the first year?

$$0$

$$6,000$

$$4,000$

$$10,000$