Bad Wolf Enterprises has a $100 million, 10 years to maturity, floating rate bond outstanding. The interest rate adjusts every June 15 and December 15 at the annual rate of Libor + 50 basis points. Bad Wolf Enterprises has entered into a swap agreement in which the company receives Libor + 30 basis points every June 15 and December 15 and pays 7.125 every June 15 and December 15 on a notional principal amount of $100 million.
The net interest payment Bad Wolf Enterprises must make June 15 is