Intro

A forward rate agreement $($FRA$)$ pays $4\mathrm{.}9\%$ interest $($with semiannual

compounded$)$ for $6$ months on a principal of $$170$ million.

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:

Part $1$

What is the value of the FRA to the payer of the $4\mathrm{.}9\%$ if the FRA covers the period

from $1$ to $1\mathrm{.}5$ years $($in $$)?$ Please break down the answers in simple term