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Question 2 Use the rates shown in Table below to value an FRA where you will pay 4.3% for the third year on $1 million.

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Question 2 Use the rates shown in Table below to value an FRA where you will pay 4.3% for the third year on $1 million. x Maturity (years) Rate (% per annum) 1 2.0 2 3.0 3 3.7 4 4.2 4.5 Selected Answer: 7,168.52 Correct Answer: 8,343.42 + 0.196

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