Question: QUESTION 2 Use the rates shown in Table below to value an FRA where you will pay 4.9% for the third year on $1 million.

QUESTION 2 Use the rates shown in Table below to value an FRA where you will pay 4.9% for the third year on $1 million. Maturity years) Rate (% per annum) 1 2.0 2 3.0 3 3.7 4 4.2 5 4.5

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