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I got conflicting answers on both of these questions, please can someone assist me You are working for a small private equity hedge fund, run

image text in transcribedimage text in transcribedI got conflicting answers on both of these questions, please can someone assist me

You are working for a small private equity hedge fund, run by Lachlin, who entered a 6:18 Forward Rate Agreement (FRA) six months ago in order to borrow at a fixed rate. The FRA was for a face value of $26,000,000 with Lachlin paying 6.40% pa. The market rate right now is 5.91% pa and is expected to be 6.64% pa in another 6 months time. Calculate the payment that must be made to the lender upon settlement of this FRA. Assume that each period is 30 days long and there are 360 days in a year. Give your answer in dollars and cents to the nearest cent. Settlement amount = $ You are a recent graduate working with a large financial consulting firm as part of their graduate program. You have spent the previous couple of weeks participating in the graduate program training seminar. For your first project you have been put onto a team working with Fantra's (a global soft drink manufacturer) financial team. As an introductory exercise, to get you warmed up, your boss has provided you with the following data and asked you to calculate the one year forward rate 2 years from now. Interest rate 9.1% pa ia,b one period spot rate 10,1 one period forward rate 11,2 three period spot rate 10,3 5.5% pa 10.4% pa Calculate the one year forward rate two years from now. Give your answer as a percentage per annum to 2 decimal places. 12,3 = % pa

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