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It is 1 January 2023 and BNW, a British MNC, is seeking to borrow USD21 million for a 9-month period in 3 months' time.

It is 1 January 2023 and BNW, a British MNC, is seeking to borrow USD21 million for a 9-month period in 3 months' time. The MNC sees the following prices in the Eurodollar futures market. Today: 98.220 March: 97.765 June: 96.710 September: 94.821 December: 93.385 If BNW decides to hedge its cost of borrowing what is the effective annual interest rate that BNW borrows at assuming 360 days in a year?

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