Hi, I have a question on this problem.

Some years ago Ford borrowed funds at the LIBORBM +1%. Interest payments are made on a three months basis the 1/1, 1 I4, 117 and l! 10 of each year. Principal payments are made every six months the 1/1 and the 1/7 of each year for an amOunt equal to 5,000,000 Euro. Now we are at the rst of February 2015: the principal is equal to 20 ,000 ,000 Euro and you know that the LIE OR3M for the rst payment (1/4) is equal to 3.5%. Determine the hedging strategy: Specify which FRAIFRAs you should negotiate, at which rate and for which amount