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Jay Inc. has entered into an FRA and agreed to pay 3.6% on $2 million for 6 months starting in 4 months. Suppose rate proves
Jay Inc. has entered into an FRA and agreed to pay 3.6% on $2 million for 6 months starting in 4 months. Suppose rate proves to be 4.2% (with semiannual compounding). What is the equivalent payoff at the 4 months point? (Please do not round intermediate calculations.)
A.$5,796
B.$5,877
C.$5,792
D.$5,875
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