At time t,3M borrows 12.8 billion at an interest rate of 1.2 percent, paid semiannually, for a period of two years. It then enters into a two-year yen/dollar swap with Bankers Trust (BT) on a notional principal amount of $100 million ( 12.8 billion at the current spot rate). Every six months, 3M pays BT U.S. dollar LIBOR6, while BT makes payments to 3M of 1.3 percent annually in yen. At maturity, BT and 3M reverse the notional principals. a. Assume that LIBOR6 (annualized) and the /S exchange rate evolve as follows. Calculate the net dollar amount that 3M pays to BT ("-") or receives from BT ("+") each six-month period. c. Suppose 3M decides at t+18 to use a six-month forward contract to hedge the t+24 receipt of yen from BT. Six-month interest rates (annualized) at t+18 are 5.9% in dollars and 2.1% in yen. With this hedge in place, what fixed dollar amount would 3M have paid (received) at time t+24 ? How does this amount compare to the t+24 net payment computed in part a? d. Does it make sense for 3M to hedge its receipt of yen from BT? Explain