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Unilever needs to borrow $25 million in 3 months for a six month period (180 days). To lock in the rate in this loan Unilever
Unilever needs to borrow $25 million in 3 months for a six month period (180 days). To lock in the rate in this loan Unilever buys a 3X9 FRA on libor at 7.5%. In three months LIBOR is 9%. What payment does Unilever receive?
The answer is $179,425.8. Please show how to get there.
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