2. If your company needs to borrow 8,000,000 euros in 6 months that you can pay back in 3 months. In order to hedge against an increase in interest rates in 6 months, you purchase an FRA (6 9) with a bank at an FRA rate of 2%, with a principal of 8,000,000 euros.

1. If in 6 months the interest rate rose to 2.5%, who would pay compensation? 1 point.
2. What would be the value of this compensation? 1 point.
3. If you had instead used a swap contract to hedge against an interest rate risk, what would have been the effect of an increase in interest rates on the value of the swap for the party that 1/ receives the fixed rate; 2/ pays the fixed rate. 1 point.