Question: . You are the fixed rate payor in a plain vanilla swap. You will pay 6%. The variable payor will pay LIBOR plus 1/2. LIBOR

. You are the fixed rate payor in a plain vanilla swap. You will pay 6%. The variable payor will pay LIBOR plus 1/2. LIBOR is currently at 5.5%. The notional principal on the swap is $10,000,000. Fill in the following table. What is the net cash flow to YOU if LIBOR is at:

4% 5% 6% 7% 8% 9%

NET _______ _________ _________ _________ _________ _________

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