Suppose that the $2-$year risk$-$free rate is $3\%.$ What is the value of an FRA according to which you will pay $4\%$ per annum for the last $6$ months of the second year and receive $6-$month LIBOR realized in $18$ months on $$100$ million. The forward LIBOR rate for the last $6$ months of the second year is $5\%$ per annum. All rates are semiannually compounded.