Use the rates in Problem 4.14 to value an FRA where you will pay 5% for the

Question:

Use the rates in Problem 4.14 to value an FRA where you will pay 5% for the third year on $1 million.
In problem 4.14
Maturity( years) Rate (% per annum)
1 ……………………………………. 2.0
2 ……………………………………. 3.0
3 ……………………………………. 3.7
4 ……………………………………. 4.2
5 ……………………………………. 4.5