1. Some time ago a swap dealer entered into a Forward Rate Agreement (FRA) that has a notional value of $25,000,000. The swap dealer agreed to pay 4.96% based on quarterly compounding and receive Libor. Libor zero rates (based on continuous compounding are given below.
2. 1. What is the value of the FRA to the swap dealer assuming it begins in 9 months and lasts for 3 months?
   2. Provide an example which shows exactly how the swap dealer can hedge its position in the FRA.

3. Maturity (months)	Zero Rate (%)
   3	4
   6	4.5
   9	5
   12	5.5
   15	6