leveraged floater payments, interest, planning, net, 400

John10

JMI has issued a $12 million leveraged floater with semi-annual interest payments. The rate is 1.2 times LIBOR. The firm is planning to hedge the risk of this note with a bond paying 6 percent and a swap with a fixed rate of 4.4 percent. The net semi-annual cash flow is closest to:

A) $115,200.

B) $230,400.

C) $96,000.

please show your cal and explanation. Thanks!