Question: The yield curve is flat at 5% per year with continuous compounding. The value of an FRA where the holder receives interest at a rate

The yield curve is flat at 5% per year with continuous compounding. The value of an FRA where the holder receives interest at a rate of 7% per year compounded semiannually for a six-month period on a principal of $1,000 starting in three years is closest to:

options: $8.60 $8.35 $8.45 $8.15

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