Harcourt Corp. issues fixed rate date at 9%. It agrees to an interest rate swap which calls for it paying LIBOR to Brandt Co. and receiving 8.5% from Brandt. What is Harcourt's net payment?
- LIBOR - 0.5%
- LIBOR + 0.5%
- LIBOR + 8.5%
- LIBOR + 9.0%
- None of the above