Explanation

To calculate the net payment received by Savers Bancorp on August 9, 2010, we need to determine the fixed rate received and the floating rate paid for the period from February 9, 2010 to August 9, 2010.

Given:

• Notional amount: USD 6,500,000
• Fixed rate received: 4.00% per annum
• Floating rate paid: LIBOR + 1.20% per annum
• Payment frequency: Semi-annual (6 months)
• LIBOR rate on Feb 9, 2010: 0.39%

Calculation:

1. Fixed payment received:

   $$\text{Fixed payment} = \text{Notional} \times \text{Fixed rate} \times \frac{6}{12}$$ $$\text{Fixed payment} = 6,500,000 \times 4.00\% \times 0.5 = 6,500,000 \times 0.04 \times 0.5 = \text{USD 130,000}$$

2. Floating payment paid: The floating rate is based on the LIBOR rate set at the beginning of the period (Feb 9, 2010), which is 0.39%.

   $$\text{Floating rate} = \text{LIBOR} + 1.20\% = 0.39\% + 1.20\% = 1.59\% \text{ per annum}$$ $$\text{Floating payment} = \text{Notional} \times \text{Floating rate} \times \frac{6}{12}$$ $$\text{Floating payment} = 6,500,000 \times 1.59\% \times 0.5 = 6,500,000 \times 0.0159 \times 0.5 = \text{USD 51,675}$$

3. Net payment received: Since Savers Bancorp receives fixed and pays floating:

   $$\text{Net payment} = \text{Fixed received} - \text{Floating paid}$$ $$\text{Net payment} = 130,000 - 51,675 = \text{USD 78,325}$$

However, looking at the options, USD 78,325 corresponds to option B. But let me verify the calculation more carefully.

Alternative calculation approach:

This confirms that the net payment is USD 78,325, which matches option B.

Therefore, the correct answer is B. USD 78,325