A corporate treasurer needs to hedge the risk of the interest rate on a future transaction. The risk is associated with the rate on 180-day LIBOR in 60 days. The term structure of LIBOR is given as follows (assume a 30/360 dav count convention). Assume that LIBOR is the appropriate discount rate for FRA cash flows at settlement. a. Determine the appropriate rate for an FRA on 180-day LIBOR expiring in 60 days. (1 point) b. Suppose the manager went long this FRA. Now, 30 days later, interest rates have moved significantly upward to the following: The treasurer would like to know where the company stands on this FRA transaction. Determine the market value of the FRA for a $50 million notional principal. (2 points) c. On the expiration day, 180-day LIBOR is 5.7 percent. Determine the payment made to or by the company to settle the FRA contract. (2 points)