Nordic Bank has entered the following position in a 6-month (180-day) Forward Rate Agreement (FRA) contract, with a face value of $4 million, for speculative purpose: FRA rate = 9% Counterparty Market rate LIBOR NORDIC BANK (i) What interest movement has been anticipated by Nordic Bank when it enters the above speculative position? (4 marks) (ii) On the FRA's settlement date, the market interest rate LIBOR is observed to be 10% (per annum). Calculate the settlement amount in dollar terms (show all workings). Who is responsible for paying this amount and why? (4 marks)