Suppose that spot interest rates with continuous compounding are as follows: Maturity (months) Rate (% per annum) 6.0 6 6.2 9 12 6.5 15 6.6 18 6.7 6.4 (a) Calculate forward interest rates with continuous compounding for the sec- ond, third, fourth, fifth, and sixth quarters. (b) What is the value of an FRA that enables the holder to earn 6.5% for a 3- month period starting in 1 year on a principal of $1,000,000? The 6.5% interest rate is quoted with quarterly compounding. Suppose that spot interest rates with continuous compounding are as follows: Maturity (months) Rate (% per annum) 6.0 6 6.2 9 12 6.5 15 6.6 18 6.7 6.4 (a) Calculate forward interest rates with continuous compounding for the sec- ond, third, fourth, fifth, and sixth quarters. (b) What is the value of an FRA that enables the holder to earn 6.5% for a 3- month period starting in 1 year on a principal of $1,000,000? The 6.5% interest rate is quoted with quarterly compounding