Question
The company your working for has to borrow $5,000,000 in three months time for a period of 6 months. You approach an FRA dealer, who
The company your working for has to borrow $5,000,000 in three months time for a period of 6 months. You approach an FRA dealer, who provides the following forward quotations:
3Mv9M(19): 8.757.55
3Mv6M(19): 8.657.45
What will be the agreed rate if you enter an FRA agreement with this dealer?
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Investments
Authors: Zvi Bodie, Alex Kane, Alan Marcus, Lorne Switzer, Maureen Stapleton, Dana Boyko, Christine Panasian
9th Canadian Edition
1259271935, 9781259271939
