Harold intends to borrow $10 million for 12 months, in three months time.He is able to borrow with quarterly interest payments and resets at Bank Bill Swap Rate +0.5% p.a., but fears that rising interest rates will increase his borrowing costs.A 12-month interest rate cap with a strike rate of 6.5% p.a. and referenced to Bank Bill Swap Rate commencing in three months, is available for the premium of 0.15% p.a.Determine the amount, direction and timing of the payments that will be made under the combination of the loan and cap if the Bank Bill Swap Rate in 3, 6, 9 and 12 months is respectively 5.9%, 6.4%, 7.2% and 8.0% p.a.(Assume 90 day quarters and a 360 day year.)