Using the term structure data provided in the table below calculate themarket price of a six-monthcaplet on a three-monthloan. The cap is set to 7% per annum, using the U.S. money market quoting convention, and the forward volatility is 12%

The notional amount of the loan is $75 million.

Tenor Rate Days in period

0x3 0.04 91

3x6 0.05 90

6x9 0.06 92

9x12 0.06 92

Answer: $1,356.50

I need the calculations with clarification