Q1. On NOV 1, 03 a firm agrees to borrow $2 2003 through DEC 1 2004 at LIBOR + 70bps. Intere on MAR 1; JUN 1; SEP 1 and DEC 1, 2004. 1.1 on NOV 1, 03: LIBOR = 6.50% and the Eurodol are: 90.02 for DEC 2003; 90.50 for MAR 2004; 91.1 91.54 for SEP 2004. Using a time table, describe the hedge t NOV 1. 1.2 The following are LIBOR rates and IMM i materialized during the year: Date LIBOR(%) IMM index DEC 1, 03 6.80 DEC Futures MAR 1, 04 7.80 MAR Futures JUN 1, 04 8.80 JUN Futures SEP 1, 04 9.80 SEP Futures Use the same time table you used in 1.1 activities and cash flows in the spot and futures ma Show the interest payments as well as the gain/los trading. Compare the Average loan rate with and w