1. The zero curve is flat at 0.06 per annum. What is the value of an FRA where the holder receives interest at the rate of 0.08 per annum for a six-month period on a principal of $1,000 starting in two years? All rates are compounded semiannually. (Round your answer to 2 decimal places)

2. The six-month zero rate is 0.08 per annum with semiannual compounding. The price of a one-year bond that has a principal of $100 and provides a coupon of 6% per annum semiannually is $97. What is the one-year continuously compounded zero rate? (Round your answer to 4 decimal places)