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Hi, I have a question on this problem.

Screen Shot 2019-12-11 at</h1><p class='abPRemoveTitle'> 12.38.06 PM.png

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Some years ago Ford borrowed funds at the LIBORBM +1%. Interest payments are made on a
three months basis the 1/1, 1 I4, 117 and l! 10 of each year. Principal payments are made every six
months the 1/1 and the 1/7 of each year for an amOunt equal to 5,000,000 Euro. Now we are at the
first of February 2015: the principal is equal to 20 ,000 ,000 Euro and you know that the LIE OR3M
for the first payment (1/4) is equal to 3.5%. Determine the hedging strategy: Specify which
FRAIFRAs you should negotiate, at which rate and for which amount.

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