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A company will need to roll over' its existing $184633 funding arrangement in two months' time for a further 180 days. It is concerned that
A company will need to roll over' its existing $184633 funding arrangement in two months' time for a further 180 days. It is concerned that interest rates in the short-term debt market may rise in the mean time, and decides to manage the risk exposure by entering into a forward rate agreement with its bank. The bank quotes a price (2Mv8M) of 8.68 to 10. In two months' time the reference rate (BBSW) is 6.9% per annum. Calculate the settlement amount. Question 10Answer a. $1029.17 b. $1522.36 c. $178475.59 d. $176953.23 e. $1503.05 f. $1016.08
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