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SPG is a US MNC that has operations in Europe, the Middle East, and Africa. It has identified needs of leverage of USD24 million in

SPG is a US MNC that has operations in Europe, the Middle East, and Africa. It has identified needs of leverage of USD24 million in 7 months for a six-month period. To lock in the rate on this loan, SPG sells a forward rate agreement on LIBOR6 at 5.839% to HSBC for a notional principal of USD255 million. In 7 months time, LIBOR6 is 4.173%. How much will SPG pay to HSBC assuming 360 days in a year?

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