XYZ Corporation enters into a 6-year interest rate swap with a swap bank in which it agrees to pay the swap bank a fixed-rate of 9 percent annually on a notional amount of $10,000,000 and receive LIBOR - percent. As of the third reset date (i.e. mid-way through the 6 year agreement), calculate the price of the swap, assuming that the fixed-rate at which XYZ can borrow has increased to 10%.

A. $248,685.

B. $900,000.

C. $2,700,000.

D. $7,300,000.

How to solve this question (working)?