Question
In an FRA, an annualized rate of 3% will be received and six-month LIBOR will be paid on aprincipal of USD 5000,000 for a six-month
In an FRA, an annualized rate of 3% will be received and six-month LIBOR will be paid on aprincipal of USD 5000,000 for a six-month period starting in 18 months. If the annualized six-month forward rate in 18 months proves to be 3.5%, what is the settlement on the FRA? When is it made?
A.10079
B.12285
C.13045
D.14253
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Smith and Roberson Business Law
Authors: Richard A. Mann, Barry S. Roberts
15th Edition
1285141903, 1285141903, 9781285141909, 978-0538473637
