Question 12 3.03 pts A company entered into an FRA. The terms of the...
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Question 12 3.03 pts A company entered into an FRA. The terms of the agreement provide that the company will receive a fixed rate of 6% on a principal of $100 million between the end of years 1 and 2. The LIBOR rate for years 1 and 2 is 2.3079% and 3.4503%, while the forward rate at year 2 is 4.6055%. All rates are compounded annually. The value of the FRA is closest to: 0 +$1,303,032. O +$872.900. 0 -$1,303,032. Previous Next >
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