A company took out a floating rate loan of $20 million with quarterly interest payments at three-month Libor. Concerned that interest rates would rise in the next two years, the company purchased a two-year cap with a strike price of 5%, a reference rate of three-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 LIBOR is 6% when the first coupon payment comes, what will be the delivery amount obtained by the company?

(2) If LIBOR is 4% when the first coupon date comes, what is the amount of interest the company needs to pay? What is the actual financing cost per cent?