Question: The manager asks you to value 5.87% 1 X 4 FRA with a notional principal is 2 million twenty days after initiation. Based on information

The manager asks you to value 5.87% 1 X 4 FRA with a notional principal is 2 million twenty days after initiation. Based on information from Bloomberg, 10-day Libor is 4.2%. 30 day LIBOR is 5%, 100 day Libor is 6% and 120 day LIBOR is 7%. What is the value of the FRA, round to the nearest dollar.

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