Using the following data to answer the questions.

a.) Plot the yield curve using spot zero rates, where the interest rates are based on continuous compounding.

b.) Assume the spot zero rate for 12 months increases. In that event, how does the value of a Forward Rate Agreement(FRA) change for a trader that has agreed to receive a fixed interest rate over the period from 9 to 12 months? Please explain your answer and provide a formula which demonstrates you conclusion.

Bond Number Coupon(% Treasury Bond Price($) 994 Maturity Date(Months) 32 10 02 22 982 62 42 32 92 52 972 96 42 122 62 Bond Number Coupon(% Treasury Bond Price($) 994 Maturity Date(Months) 32 10 02 22 982 62 42 32 92 52 972 96 42 122 62