Multiple Choice
Which of the following is not true of forward rate agreements (FRA) ?
A) The two counterparties to an FRA agree to a notional principal.
B) FRAs are traded on an organized exchange.
C) The buyer of a FRA agrees to pay a fixed-rate coupon payment.
D) FRAs are not as liquid as most futures contracts.
E) FRAs can be used to manage interest rate risk.
Correct Answer:
Verified
Correct Answer:
Verified
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