You are given the following information about an interest rate swap: two year term, semiannual payment, fixed rate = 6%, floating rate = LIBOR + 50 basis points, notional USD 10 million. Calculate the net coupon exchange for the first period if LIBOR is 5% at the beginning of the period and 5.5% at the end of the period.
A. Fixed-rate payer pays USD 0
B. Fixed-rate payer pays USD 25,000
C. Fixed-rate payer pays USD 50,000
D. Fixed-rate payer receives USD 25,000