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There isa 3-month (assume 90 days) LIBOR based forward rate agreement with a notional of$25mm and fix a rate of 3.25%between two parties. 3-Month LIBOR

There isa 3-month (assume 90 days) LIBOR based forward rate agreement with a notional of$25mm and fix a rate of 3.25%between two parties. 3-Month LIBOR rates rise to 4.00% at expiration. What is the payoff on the agreement(Do not worry about which party is long or shortjust the net payments between 2 parties)?

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