Assume interest rates are lognormal. Compute the convexity adjustment for the fair value LIA rate. What would the convexity adjustment be if rates are normal? (In this question, assume semi-annual accrual, take the Libor rate to be 3% and normal vol to be 1.05%.) Compare the convexity adjustment for the LIA rate setting in 30 years’ time under a lognormal versus normal model where lognormal vol is taken as 35%.