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A firm will need to borrow $15 million for three months, starting 2 years from today, at LIBOR plus 1%. If the current Eurodollar futures

A firm will need to borrow $15 million for three months, starting 2 years from today, at LIBOR plus 1%. If the current Eurodollar futures contract maturing in 2 years is quoted at 97.50, what is the interest rate the firm can lock in if it hedges this liability using Eurodollar futures (answer as a percent with two decimal place accuracy)?

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