Question: Teltrex International can borrow $3,000,000 at LIBOR plus a lending margin of 0.75 percent per annum on a three-month rollover basis from Barclays in London.

Teltrex International can borrow $3,000,000 at LIBOR plus a lending margin of 0.75 percent per annum on a three-month rollover basis from Barclays in London. Suppose that the three-month LIBOR is currently 5.53125 percent. Further, suppose that over the second three-month interval LIBOR falls to 5.125 percent. How much will Teltrex pay in interest to Barclays over the six-month period for the Eurodollar loan? (Leave your answers without rounding with two decimals) Calculate cash settlement of FRA

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