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. Show that the target interest rate locked in by the company is the same, irrespective of whether the 6-month LIBOR rate at expiration is 4% or 2%. Assume a counterparty and be specific about the terms.