Assume the following terms for an FRA: Reference rate is three-month LIBOR, the contract rate is 5.5%, the notional amount is for $10 million, and the number of days to settlement is 91 days. If the settlement rate is 6.25%, what is interest differential?
A) $17,489
B) $18,168
C) $18,531
D) $18,958
Correct Answer:
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