5. (20 Pts) A project company borrows from a commercial bank based on a floating rate of SOFR+2.5% with semiannual resets. Given the following SOFR rate forecasts, exemplify a simple and financially reasonable hypothetical interest rate swap agreement with a swap counterparty that could hedge the project company's interest rate risk, calculate the project company's net interest costs for the following SOFR rates and comment on the results. Semiannual Periods SOFR Forecast 2 3 4 5 6 7 2.5% 2.7% 2.9% 3.1% 3.3% 3.5% 3.5% 4.0%