On the 15th of May 2012 you enter a Forward Rate Agreement (FRA) to borrow on the 15th of September 2012 $1'000'000 for 7 months at a xed annualized interest rate of 5% (for a FRA with a contract length of 7 months the compounding frequency is 12 7 -times c.p.a.). What is the value of the FRA for you as a borrower on the 15th 3 of August 2012 if (on the 15th of August) the 1-month spot rate is 3% (semi-annual compounded) and the 8-month spot rate is 5% (monthly compounded)?