1. Assume that BHP plans to borrow $10,000,000 in two months time using 180-day bank accepted bills and plans to use FRAs to hedge the interest rate risk. If 2 x 8 FRAs are being quoted at 4.67%, what is the gain (loss) on a hedging strategy using an FRA if the market rate of interest in two months time is 5.04%? Note: Enter "-" negative sign for the answer which has loss on the FRAs and in 2 decimal places.

2. Aventador Ltd plans to obtain funds to meet it's short-term debt obligations through Commercial Paper in December. Aventador Ltd plans to borrow $6.8 million for three months starting in December at LIBOR plus 0.75%. The Dec Eurodollar futures contract is quoted as 96.61under CME now, Aventador Ltd decided to hedge its interest rate risk. If the actual three-month rate turns out to be 2.2% what will be the outcome of finance cost for its short term debt? Note: Enter the answer in 2 decimal places