THE FINANCE MANAGER OF A MULTINATIONAL COMPANY EXPECTS TO HAVE SURPLUS FUNDS OF $50 MILLION IN THREE MONTHS FROM NOW. HE HAS DECIDED TO PARK THE FUNDS IN A 3 MONTH DEPOSIT . THE CURRENT 3 MONTH DEPOSIT RATE IS 3%. A 3/6 MILLION FRA IS BEING QUOTED AT 2.75%/3%. HE SELLS AN FRA TO PROTECT AGAINST INTEREST RATE RISK. YOU ARE REQUESTED TO COMPUTE THE EFFECTIVE RATE OF RETURN ON HER INVESTEMENT, IF 3 MONTHS LATER THE 3 MONTH DEPOSIT RATE IS 3.50%.