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The 6 - month, 1 2 - month, 1 8 - month and 2 4 - month zero rates are 3 % , 3 .

The 6-month, 12-month, 18-month and 24- month zero rates are 3%,3.2%,3.5% and 3.8 with semiannual compounding. (1) Whatare the rates with continuous compounding? (2) What is the forward rate for the six-month period beginning in 18 months? (3) What is the value of an FRA that promises to pay you 3%(compounded semiannually) on a principal of $5 million for the six-month period starting in 18 months?

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