A $100 notional 6×12 FRA has the following features at inception. The first six month period is 182 days and the second is 183 days. The initial locked-in rate on the FRA was 6%. After one month, the new 5×11 FRA fixed rate is 6.2% with 151 days left in the first five month period. What is the value of the existing FRA contract to the buyer if the five-month Libor rate at this point is 5%?
Note:I would appreciate it if any of you guys could show the equation so I can understand the problem.