The Bank of US has negotiated a plain vanilla swap with the Bank of EU. Under the agreement, the Bank of US will pay fixed payments of 10 percent to the Bank of EU and receive floating payments equal to (U.S. dollar) LIBOR plus 2 percent from the Bank of EU at the end of each of the next five years. Assume the notional principal is $10 million. At the end of the 1st year, the LIBOR is 9%. Which bank will pay which bank and how much? (show your work)