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In this short video, we walk you through a step by step approach to dealing with traded interest rate futures questions - suitable for undergraduate, postgraduate or professional qualifications. If you want the detailed scenario we'll be using - you can find it below: Today is 31st December. Our UK based company needs to take a loan of £3,150,000 on 31st March for 6 months. Interest rates are currently 1% and we are worried that rates will rise between now and March. March, three-month traded futures are priced at 98.90 and have a standard contract size of £500,000. Assuming that on 31st March, interest rates are 1.25% and futures are priced at 98.75, calculate the 6-month cost of our loan if it is hedged using traded futures.