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Pepsi rolls over a $100 million loan priced at LIBOR6 on a six-month basis. The company wants to hedge against interest rate increases at the

Pepsi rolls over a $100 million loan priced at LIBOR6 on a six-month basis. The company wants to hedge against interest rate increases at the next roll-over date by entering into a forward rate agreement with Bank of America. Suppose the current LIBOR6 is currently 6.0%. If interest rates have risen to 8% at the next roll-over date, how much does Pepsi receive or pay to Bank of America

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