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You entered into a 3 6 forward rate agreement that obliged you to borrow $10,000,000 at 3 percent. Suppose at the maturity of the FRA,

You entered into a 3 6 forward rate agreement that obliged you to borrow $10,000,000 at 3 percent. Suppose at the maturity of the FRA, the prevailing market interest rate is 3.5 percent. Explain whether you are better off or disadvantaged because of your FRA position? What is the payoff at the maturity of the FRA?

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