4.31. Suppose the risk-free rates are as in Problem 4.30. What is the value of an FRA where the holder pays LIBOR and receives 7% (semiannually compounded) for a 6-month period beginning in 18 months? The current forward rate for this period is 6% (semiannually compounded) and the principal is $10 million.

From Question 4.30:

The 6-month, 12-month, 18-month, 24-month zero rates are 4%, 4.5%, 4.75% and 5% with semiannual compounding.

a) What are the rates with continuous compounding?

b) What are the forward rates for the 6-month period beginning in 18-months?

c) What is the two-year yield?

Need the answer for Question 4.31.