Intro A forward rate agreement (FRA) exchanges a fixed 4.9% interest (with semiannual compounded) for 6 months on a principal of $130 million with a floating rate determined below. Consider the following annual interest rates. The forward rates are for the 6-month period ending T years from now, where T is given in the first column: Risk-free 6-month forward rate compounding) Maturity spot rate (years) (with continous (with semiannual compounding) 0.5 0.039 1 0.04 0.0414 1.5 0.045 0.0558 2 0.051 0.0702 Ex: the 6-month forward rate from 1 to 1.5 is 0.0558 % Note: You can actually calculate the 6-month forward rates from the spot rates - column 3 should just save you some time but you may want to calculate them on your own Part 1 Attempt 1/4 for 10 pts. What is the value of the FRA to the payer of the fixed 4.9% if the FRA covers the period from 1 to 1.5 years (in $)? 0+ decimals Submit Attempt 1/4 for 10 pts. Part 2 What is the value of the same FRA to the receiver of the 4.9% (in $)? 0+ decimals Submit Part 3 Attempt 1/4 for 10 pts. What is the value of the FRA to the payer of the fixed 4.9% if the FRA covers the period from 1.5 to 2 years (in $)?