60 1.00% + 0.50% 90 1.05% + 0.50% 120 1.10% + 0.55% 150 1.15% + 0.55% 180 1.13% + 0.55% 210 1.20% + 0.60% 240 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 FHA 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)