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Suppose that the forward LIBOR rate for the period between time 1.5 years and time 2 years in the future is 4.5% and that some

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Suppose that the forward LIBOR rate for the period between time 1.5 years and time 2 years in the future is 4.5% and that some time ago a company entered into an FRA where it will pay 5.3% and receive LIBOR on a principal of $10 million for the period. The 2-year risk-free rate is 4%. What is the value of the FRA

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