An investor approaches a swap dealer wishing to engage in a total return swap. The underlying asset is $10 million principal amount of a 9% BB-rated 5-year corporate bond that has semiannual interest payments. The swap dealer agrees to pay the total return on this bond for the coming 6 months in return for payments based on (1) an interest rate of 6-month LIBOR plus a spread of 30 basis points and (2) a notional principal amount equal to the face value of the underlying asset, $10 million. At the swap date, the bond is worth par, and the 6-month LIBOR is 6%. Suppose that at the termination date, the value of the bond has still not changed. Determine the net payment and the party that is owed. (Use discrete compounding.) | Financial Risk Manager Part 1 Quiz - LeetQuiz