3) Your company plans to borrow $2 million in 90 days for 270 days. It wants to hedge against an increase in future borrowing costs due to a possible rise in short-term interest rates using a forward rate agreement (FRA) with an FRA dealer. The current term structure of SOFR is as follows: I Term Rate. 30 days 5.20 % 90 days 5.34 % 180 5.60 days % 360 5.85 days % a) Is the firm buying or selling the FRA here? b) It is typical to refer to an FRA as an AXB. What are A and B here? c) Chance and Brooks write the FRA as FRA(0, h, m). What are h and m here? d) Calculate the rate that your firm will lock in on the FRA in this problem. e) At expiration, the 180-day LIBOR is 6.10%. Calculate the payoff on the FRA. Does your company receive a payment or make a payment to the dealer?