The following data is observed from the bond market. All coupon-paying bonds pay coupons semi-annually, and other bonds in the market use the semi-annual convention. Prices areexpressed as a percentage of face value.

Question 1: Today is October 15th, 2020. Your client has asked you to create a Forward Rate Agreement (FRA) for them. They wish to lock in the borrowing rate on $350,000 for sixmonths, beginning in one year. Design the contract for your client. Be specific regarding the parameters and the rate.

Question 2 : Two months have passed since Question 1 above. It is December 15th, 2020. The 10-month spot rate, expressed with continuous compounding is 0.37%. The 16-monthspot rate, expressed with continuous compounding, is 0.40%. What is the value of the FRA that you designed for your client two months ago from the viewpoint of your firm (not fromthe viewpoint of your client)?

FOR YOUR ANSWER: PLEASE UPLOAD AN EXCEL FILE, OR A WORD DOCUMENT, OR A SCANNED PAGE WITH YOUR HANDWRITTEN ANSWER. The following data is observed from the bond market. All coupon-paying bonds pay coupons semi-annually, and other bonds in the market use the semi-annual convention. Prices are expressed as a percentage of face value. Bond Coupon Rate Maturity Price 1 15 APR 2021 99.79521 2 15 OCT 2021 99.61076 3 2.00% 15 APR 2022 102.49535 4 2.50% 15 OCT 2022 104.38072 Question 1: Today is October 15th, 2020. Your client has asked you to create a Forward Rate Agreement (FRA) for them. They wish to lock in the borrowing rate on $350,000 for six months, beginning in one year. Design the contract for your client. Be specific regarding the parameters and the rate. Question 2: Two months have passed since Question 1 above. It is December 15th, 2020. The 10-month spot rate, expressed with continuous compounding is 0.37%. The 16-month spot rate, expressed with continuous compounding, is 0.40%. What is the value of the FRA that you designed for your client two months ago from the viewpoint of your firm (not from the viewpoint of your client)? FOR YOUR ANSWER: PLEASE UPLOAD AN EXCEL FILE, OR A WORD DOCUMENT, OR A SCANNED PAGE WITH YOUR HANDWRITTEN ANSWER. The following data is observed from the bond market. All coupon-paying bonds pay coupons semi-annually, and other bonds in the market use the semi-annual convention. Prices are expressed as a percentage of face value. Bond Coupon Rate Maturity Price 1 15 APR 2021 99.79521 2 15 OCT 2021 99.61076 3 2.00% 15 APR 2022 102.49535 4 2.50% 15 OCT 2022 104.38072 Question 1: Today is October 15th, 2020. Your client has asked you to create a Forward Rate Agreement (FRA) for them. They wish to lock in the borrowing rate on $350,000 for six months, beginning in one year. Design the contract for your client. Be specific regarding the parameters and the rate. Question 2: Two months have passed since Question 1 above. It is December 15th, 2020. The 10-month spot rate, expressed with continuous compounding is 0.37%. The 16-month spot rate, expressed with continuous compounding, is 0.40%. What is the value of the FRA that you designed for your client two months ago from the viewpoint of your firm (not from the viewpoint of your client)