Exercise $2$

An industrial Company located in Brussels will need $1,000,000$ EUR next year.

If they got the loan today, the interest rate the bank offers is $5\%$ and the loan is to be paid back in only one payment after one year.

Since the finance manager of that company fears that next year $($when the Co$.$ will get the loan$)$ the interest rate will rise, the Co$.$ accepts a Forward Interest Rate Agreement for a $6\%$

Question $2$a: In case that, at origin $($next year$),$ the interest rate rises to $5\mathrm{.}6\%,$ how much money will the company gain$/$loose with this FRA agreement?

Question $2$b: In case that, at origin $($next year$),$ the interest rate rises up to $6\mathrm{.}6\%,$ how much money will the company gain$/$loose with this FRA agreement?table in excel and just show the functions sorking somwhere aside.