4. (20 Pts) Assume a project company makes a loan agreement with a lender based on a floating rate of SOFR+1.5% with quarterly resets. However, the project company is reluctant to take interest rate risk. Given the following SOFR rate forecasts, exemplify a simple and financially reasonable hypothetical cap contract that could hedge the interest rate risk and show the effective interest rates that the project company will pay. Comment on the results. Quarters 1 2 3 SOFR Forecast 3% 3.2% 3.4% 4 3.6% 3.8% 5 6 7 8 3.0% 2.8% 2.5%