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Suppose that the 9-month and 12-month LIBOR rates are 2% and 2.3%, respectively. All rates are quarterly compounded. Assume that LIBOR is used as the

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Suppose that the 9-month and 12-month LIBOR rates are 2% and 2.3%, respectively. All rates are quarterly compounded. Assume that LIBOR is used as the risk-free discount rate. What is the forward LIBOR rate for the period between 9 months and 12 months? What is the value of an FRA where 3% is received and LIBOR is paid on $10 million for the period

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