.3. 1.00% + 0.50% 115- 1.05% + 0.50% 120 1.10% + 0.55% 150I 1.15% + 0.55% 180 1.18% + 0.55% _ 1.20% + 0.60% m 1.21% + 0.60% Given the LIBOR term structure given for August 1 in Question 3. what are the effective annual rates with and without the FRA hedge? For compounding interest calculations. the company uses 365 days per year. {6 marks) Should Sustainable hedge its interest rate risk with this FRA? (1 mark)