 Assume that at the time the first interest payment/swap payment is due, LIBOR is 6.5%: Interest due to lender(s)($6,500,000) Swap payment received$6,500,000 (floating leg) payment made ($6,000,000) (fixed leg) Net Payment ($6,000,000) Note: the fixed and floating swap payments are generally netted, so that the borrower would receive a net swap payment of $500,000.
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