A bank sells a "three against nine" $4,000,000 FRA on a six-month interest rate for a six-month period beginning three months from today and ending nine months from today. The agreement rate with the buyer is 6.5 percent. There are actually 183 days in the six-month period. Assume that three months from today the settlement rate is 7 7/8 percent. Determine how much the FRA is worth and who pays whom--the buyer pays the seller or the seller pays the buyer.