2) Find the value of a Forward Rate Agreement in which you can invest $1,000,000 for 3 years at a 7% rate (annual simple, i.e., not compounded, rate) two years from now if the forward rate between year 2 and year 5 is equal to 5.5% (annual simple, i.e., not compounded, rate), and zero rates (annual, continuously compounded) for 3 and 5 years are 5% and 6% respectively 3) Find the 5-month interest rate if spot gold price is $1700 and 5-month forward gold price is $1720