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9. A few months ago, a trader entered into a Forward Rate Agreement (FRA) in which it agreed to pay a fixed rate of interest

9.
A few months ago, a trader entered into a Forward Rate Agreement (FRA) in which it agreed to pay a fixed rate of interest equal to 4%. The notional size of the FRA is $50,000,000. The FRA will start in four months and last for three months. Using the information below, find the value of the FRA from the perspective ofthe trader. Spot Zero Rate (%) Based on continuous compounding 2.0 2.0 3.0 3.0 4.0 4.0 5.0

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