Firms A and B have entered into an interest rate swap. On the first payment date, Firm A owes Firm B 12 percent of $10 million, and Firm B owes Firm A 14 percent of $10 million. Most likely, this transaction will be settled in what manner?
| a. |
Firm A will send Firm B $120,000 and Firm B will send Firm A $140,000 |
| b. |
Firm B will send Firm A $120,000 and Firm A will send Firm B $140,000 |
| c. |
Firm A will send Firm B $20,000 |
| d. |
Firm B will send Firm A $20,000 |
| e. |
none of the above |