(1 point) (Exam FM Sample Problem 156) Company ABC has an existing debt of 800000 on which it makes annual payments at an annul effective rate of LIBOR plus 0.25%. ABC decides to enter into a swap with a notional amount of 800000 , on which it makes annual payments at a fixed annual effective rate of 3.875% in exchange for receiving annual payments at the annual effective LIBOR rate. The annual effective LIBOR rates over the first and second years of the swap contract are 2.75% and 5%, respectively. ABC does not make or receive any other payments. Calculate the net interest payment that ABC makes in the second year. ANSWER = (1 point) (Exam FM Sample Problem 156) Company ABC has an existing debt of 800000 on which it makes annual payments at an annul effective rate of LIBOR plus 0.25%. ABC decides to enter into a swap with a notional amount of 800000 , on which it makes annual payments at a fixed annual effective rate of 3.875% in exchange for receiving annual payments at the annual effective LIBOR rate. The annual effective LIBOR rates over the first and second years of the swap contract are 2.75% and 5%, respectively. ABC does not make or receive any other payments. Calculate the net interest payment that ABC makes in the second year. ANSWER =