Question: Use the rates shown in Table below to value an FRA where you will pay 4.1% for the third year on $1 million. Maturity( years)

Use the rates shown in Table below to value an FRA where you will pay 4.1% 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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