In January, the startup company, Moses Tablets, received a $200 million loan for one year from Banco Federal bank with the following terms: - The interest payments received from the loan are due every six months. - The interest rate for the first 6 months is known. - The interest rate for the SIX-MONTH period from July 1st until December 31st will be determined on July 1st. at the spot 3-month Certificate of Deposit (CD) rate. There are no futures contracts on 3-month Certificate of deposit, but there are futures contracts with a delivery date of September 21 on: - $1 million 3-month SOFR (secured overnight financing rate). - $1 million 3-month Bloomberg Short-term Bank Yield Index (BSBY). In March, the firm decides to hedge its interest risk. It estimates the following regressions for its hedging period