Consider the following yield curve (continuously compounded): Maturity (Years) Rate (annualized) .25 1.25 % .5 1.5 % 1 1.75 % 1.25 2.0 % 1.5 2.0 % 1.75 2.1 % 2.0 2.2 % a) What is the forward rate corresponding to the 6 months starting in 1.5 years? b) You are long an FRA to pay 2.0% (continuously compounded) on $100 for the same period as in part (a). What is the value of the contract right now? c) What is the swap rate for a swap that starts today and pays semiannually for the next 4 6-month periods? (so, the swap has a life of 2 years) d) What is the swap rate for a swap that starts in 1 year and pays semian- nually for the next 2 6-month periods? Consider the following yield curve (continuously compounded): Maturity (Years) Rate (annualized) .25 1.25 % .5 1.5 % 1 1.75 % 1.25 2.0 % 1.5 2.0 % 1.75 2.1 % 2.0 2.2 % a) What is the forward rate corresponding to the 6 months starting in 1.5 years? b) You are long an FRA to pay 2.0% (continuously compounded) on $100 for the same period as in part (a). What is the value of the contract right now? c) What is the swap rate for a swap that starts today and pays semiannually for the next 4 6-month periods? (so, the swap has a life of 2 years) d) What is the swap rate for a swap that starts in 1 year and pays semian- nually for the next 2 6-month periods