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Posted on Oct 04, 2024

You have a 3-year $20 million loan for which you pay 3-month BBSW plus 2% margin and the next rate setting is in 2 months

You have a 3-year $20 million loan for which you pay 3-month BBSW plus 2% margin and the next rate setting is in 2 months time. The Reserve Bank has indicated they are considering the tightening of monetary policy in which case the company will:

Select one:

do nothing

buy a 2/5 FRA

sell a 2/5 FRA

buy a 2/3 forward rate agreement (FRA)

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