5 HyperBlockChain Inc. foresees tremendous growth of its business but fears interest rate increase down the road. It therefore has just entered into a forward rate agreement (FRA) with Bank of America whereby the latter agreed to lend $400 million to the former for a two-year period, effective one year from now. Currently, we observe the following spot rates: 2.65% (1-year), 2.75% (2-year), 2.90% (3-year), and 3.05% (4-year), all continuously compounded in annual terms. a) What is the fair contract rate? b) Supposing that after six months, the new term structure is the following: 2.50% (0.5-year), 2.55% (1-year), 2.60% (1.5-year), 2.70% (2-year), and 2.85% (2.5-year). What will be the contract value to Bank of America at that point?