A company obtained a floating rate loan of US $10 million with quarterly interest payments at three-month LIBOR. Concerned that market interest rates would rise over the next two years, the company purchased an interest rate cap with a two-year strike price of 6%, a reference rate of 3-month LIBOR, and an option premium of 1%. The company paid an option premium of $100,000. 360 days per year and 90 days per quarter.

(1) If the first coupon payment date comes and LIBOR is 6.5%, what dollar amount will the company receive for delivery?

(2) If LIBOR is 5% on the first coupon date, how much USD would the company need to pay? What is the financing cost percent?