Question
A company has bought a 1/3 FRA from a bank at 6% pa to hedge its $2m borrowing cost. If BBSW is 5% pa on
A company has bought a 1/3 FRA from a bank at 6% pa to hedge its $2m borrowing cost. If BBSW is 5% pa on settlement date:
Select one:
A.
the company will pay the bank $3,281.86
B.
the company will pay the bank $4,852.32
C.
the bank will pay $4,852.32 to the company
D.
the bank will pay $3,281.86 to the company
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Intermediate Accounting
Authors: Loren A Nikolai, D. Bazley and Jefferson P. Jones
10th Edition
324300980, 978-0324300987
