A company borrows $15 million from a bank for 1 year at a rate of LIBOR, currently 4.75 percent, plus 50 basis points. At the same time, the company enters a 1-year interest rate swap to pay the fixed rate of 5.25 percent and receive LIBOR. Payments are made on the basis of 180 days in the settlement period. Floating payments are made on the basis of 360 days a year while fixed payments are made on the basis of 365 days a year. LIBOR is 5.00 percent on the first settlement. The company’s total interest expense for the loan and swap for the first settlement period is closest to:()
A. $388400.
B. $425900.
C. $444600.