In June this year, your company was considering to issue short- term bank bills to finance its operation. Your company was concerned that short-term interest rates would rise and thus it decided to hedge the interest rate risk. On 15th June 2017, your company entereda forward rate agreement (FRA) with Kiwibank for issuing 90-day bank bills (B/B) in one month's time (14 July). After that date, your company then issued 90-day B/B with a face value of S1 million at maturity according to the closing B/B rates quoted by Kiwibank on 14 July. Now the management of vour company decides to review the results of the hedging strategy according to the following steps (a) To review the pricing of the FRA contracts Required: Refer to the 15th June 2017 Kiwibank B/B rate quotes in the Excel file "Assignment 1 Interest Rate Data" posted on Canvas. What are the appropriate FRA tvpe and rate that vour companv should use? Note: Suppose that Kiwibank employs the following formula and uses the mid-rates of its bid and ask quotes to price the FRA rates Also assume that 3 months is equivalent to 90 days Hint: you should decide ONE FRA among the following types of FRA, which you can derive by using the Kiwibank B/B rates data