A U.S. company has issued floating-rate notes with a maturity of 10 years, an interest rate of six-month LIBOR plus 25 basis points, and total face value of $10 million. The company now believes that interest rates will rise and wishes to protect itself against this by entering into an interest rate swap. A dealer provides a quote on a 10-year swap whereby the company will pay a fixed rate of 5 percent and receive six-month LIBOR. Interest is paid semiannually. Assume the current LIBOR rate is 4 percent. Indicate how the company can use a swap to convert the debt to a fixed rate. Calculate the first net payment and indicate which party makes the payment. Assume that all payments are semiannual and made on the basis of 180/360.