Sunny Corporation has $3,000,000 in fixed rate debt, with an annual interest rate of 3.5%, and interest payments due June 30 and December 31 of each year. On January 1, 2016, it entered a receive fixed/pay variable interest rate swap, where the variable rate is LIBOR. On January 1, 2016, LIBOR is 3.3%. On June 30, 2016, LIBOR declines to 3.0% and causes the variable rate to be reset at that time. The swap qualifies for hedge accounting.

How much does Sunny pay or receive to settle the swap for the 6-month period ending June 30, 2016?

a) $ 3,000 paid

b) $52,500 received

c) $49,500 paid

d) $ 3,000 received