$4.$ On January $2,2022,$ ABC Co$.$ issues a $5-$year, $$10,000,000$ note at LIBOR, with

interest paid annually. The variable rate is reset at the end of each year. The

LIBOR rate for the first year is $5\mathrm{.}8\%.$

ABC Co$.$ decides if prefers fixed$-$rate financing and wants to lock in a rate of $6\%.$

As a result, ABC Co$.$ enters into an interest rate swap to pay $6\%$ fixed and receive

LIBOR based on $$10$ million. The variable rate is reset to $6\mathrm{.}6\%$ on January $2,2023.$

Instruc$9$ons

a$)$ Compute the net interest expense to be reported for this note and related

swap transac$4$ons as of December $31,2022.$

b$)$ Compute the net interest expense to be reported for this note and related

swap transac$4$ons as of December $31,2023.$