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The answer is D. please show all your work thank you. 13. The risk-free yield curve is flat at 6% per annum. What is the

The answer is D. please show all your work thank you.
13. The risk-free yield curve is flat at 6% per annum. What is the value of an FRA where the holder receives LIBOR at the rate of 9% per annum for a six-month period on a principal of $1,000 starting in two years? The forward LIBOR rate is 7%. All rates are compounded semi-annually. A. $9.12 B. $9.02 C. $8.88 D. $8.63 Answer: D

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