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3 . Which of the following is not true of forward rate agreements ( FRA ) a . The two counterparties to an FRA agree

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3 . Which of the following is not true of forward rate agreements ( FRA ) a . The two counterparties to an FRA agree to a national principal b . They are traded on an exchange C . The buyer of a FRA agrees to pay a fixed - rate coupon payment d . FRAS are not as liquid as most futures contracts e . FRAS can be used to manage interest rate risk

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