1. XYZ Corporation has an outstanding floating bond having a face value of 125 million and enters into a swap agreement with a notional principal of 123 million. The frequency of swap payments is yearly. XYZ Corporation pays a floating rate of Sterling Over Night Index Average (SONIA) + 102 bp (basis points) and receives from the swap counterparty a fixed rate of interest of 155 bp. If SONIA is currently 55 bp, the NET amount XYZ Corporation will receive (+) or pay () is:

1. + 24,600
2. - 25,000
3. - 24,600
4. + 25,600
5. + 1,960,500