Accounting homework problem preparation for exam?

[fantastic800]

I have been stuck on this problem since Saturday preparing for my financial accounting exam.  Can someone tell me how to start this  problem?  I got $4,800 but was told my answer was wrong.  

On January 2, 2003, MacCloud Co. issued a 4-year, $120,000 note at 8 % annual fixed interest, interest payable semiannually. MacCloud now wants to change the note to a variable-rate note. As a result, on January 2, 2003, MacCloud Co. enters into an interest rate swap where it agrees to receive 8% fixed and pay a variable rate on $120,000 based on the prevailing LIBOR. The relevant annual LIBOR rate for the period ending June 30,2003 is 7.30% . At each 6-month period, the variable rate is reset. The relevant annual variable rate is 8.90% on June 30, 2003.

a) Compute the net interest expense to be reported for this note and related swap transaction as of June 30, 2003.

(b) Compute the net interest expense to be reported for this note and related swap transaction as of December 31, 2003    

[yes,iknow]

  nakz. 

nosebleed accounting nyo..
nyahaha.

[rHoxanne]

HAHAH..

SORRY BUT I JUST DROP LANG HERE!

I HATE ACCOUNTING!


WAAAA.....