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Intro A forward rate agreement (FRA) pays 4.8% interest (with semiannual compounded) for 6 months on a principal of $200 million. Consider the following annual

image text in transcribed Intro A forward rate agreement (FRA) pays 4.8% interest (with semiannual compounded) for 6 months on a principal of $200 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 Attempt 5/5 for 9 pts. What is the value of the FRA to the payer of the 4.8% if the FRA covers the period from 1 to 1.5 years (in $ )? Part 2 Attempt 1/5 for 9.5 pts. What is the value of the same FRA to the receiver of the 4.8% (in $ )? Part 3 Attempt 1/5 for 9.5 pts. What is the value of the FRA to the payer of the 4.8% if the FRA covers the period from 1.5 to 2 years (in $ )

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