Multiple Choice
A Forward Rate Agreement contains an agreed interest rate of 3.1% on a 6-month loan.If settled in arrears,what amount would the borrower pay or receive on an $800,000 loan if the prevailing 6-month interest rate is 3.6%?
A) $4,000 payment
B) $4,000 receipt
C) $1,729 payment
D) $1,729 receipt
Correct Answer:
Verified
Correct Answer:
Verified
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