Question
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. | $5,877 | |
| B. | $5,875 | |
| C. | $5,792 | |
| D. | $5,796 |
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Focus On Personal Finance
Authors: Jack Kapoor, Les Dlabay, Robert Hughes
3rd Edition
0073382426, 9780073382425
