Question 3 TJA Corp. is anticipating a need to borrow $10 million in three months time for a period of six months. Its banker, Bank of America has agreed to provide a 6-month, $10 million loan at LIBOR+0.5%. The 6-month LIBOR is now quoted at 3% pa. Required A. What target interest rates can TJA lock in using an FRA? Describe the hedging strategy that the company would follow. [10 marks]