You Wish to Create a Synthetic Forward Rate Agreement in Which

Multiple Choice

You wish to create a synthetic forward rate agreement in which you would lock in a return between 150 and 310 days.The price of a 150-day zero coupon bond is 0.9823 and the price of 310-day zero coupon bond is 0.9634.What is the approximate yield on the synthetic FRA?

A) 1.8%
B) 2.0%
C) 2.9%
D) 3.8%