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(iii) You signed a forward rate agreement which will be Seattled in 3 months from now for 6 months at FRA= 5.00%. The notional principal

(iii) You signed a forward rate agreement which will be Seattled in 3 months from now for 6 months at FRA= 5.00%. The notional principal is $1,000,000. If the floating interest (LIBOR) rate on settlement date is 6%, determine which party (buyer or seller to pay the net difference and by how much?

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