Assume your company needs to borrow 8,000,000 in six months that you will be able to pay back three months later. In order to hedge against a rise in interest rates in six months, your company enters into an (69) FRA with a bank at 2% FRA rate, with a notional principal of 8,000,000

If in 6 months, the interest rate increases to 2.5%, who will pay the compensation?