The payment amount under this FRA is ABC Bank (seller) has made a "three against six" Forward Rate Agreement (FRA), with XYZ Bank (buyer). Assume that the: Notional Amount = $4,000,000 Settlement Rate (SR) (i.e., three-month market LIBRO) = 5% Agreement Rage (AR) = 6% Actual number of days in the three-month agreement period = 91