Educorporation is seeking a RM 15 million loan to be drawn in 3 months. Its banker, Maybank has agreed to provide the loan at KLIBOR + 2%. The 3-month KLIBOR is being quoted at 5% while the 3-month KLIBOR futures is 94.00. (i) What target rate can Educorporation lock-in using interest rates futures ? (1 mark) (ii) Outline the hedge strategy using KLIBOR futures. (1 mark) (iii) Prove that the target rate has indeed been locked-in, even if rates rise 2% over the next 3 months (8 marks) (iv) Demonstrate how Educorporation could use a forward rate agreement (FRA) to achieve the same goal of locking-in a target interest rate ? (Assume a counterparty and be specific about the terms). (3 marks)