The treasurer of an MNE wants to take advantage of current interest rates to lend USD $25$M to the American subsidiary. It must borrow for a period of $6$ months in $3$ months. The table below gives you the current interest rates on deposit and loan. In order to generate additional income, the treasurer will add $25$ basis points to the interest rate he can structure. Give the steps the treasurer will undertake and calculate the net pre$-$tax interest income that this financial structure will provide. Write down your calculations and use a $360-$day year.

$3$ months $6$ months $9$ months $12$ months

Interest rate on deposit $3\mathrm{.}80\%4\mathrm{.}02\%4\mathrm{.}26\%4\mathrm{.}63\%$

Interest rate on loan $6\mathrm{.}72\%6\mathrm{.}94\%7\mathrm{.}26\%7\mathrm{.}60\%$