> It is currently January 1 and Loblaws is expecting that on April 1, it will need to borrow $50 million for six months (that is, this loan will be repaid on Sept 31). If the 3 month, 6 month, and 9 month LIBOR rates are 2.5% and 3.5% and 4% per annum respectively, and Loblaws enters into a Forward Rate Agreement with a bank, describe what the settlement will be at the maturity of the FRA if the 6 month LIBOR on April 1 is 4.76%. (6 points) > It is currently January 1 and Loblaws is expecting that on April 1, it will need to borrow $50 million for six months (that is, this loan will be repaid on Sept 31). If the 3 month, 6 month, and 9 month LIBOR rates are 2.5% and 3.5% and 4% per annum respectively, and Loblaws enters into a Forward Rate Agreement with a bank, describe what the settlement will be at the maturity of the FRA if the 6 month LIBOR on April 1 is 4.76%. (6 points)