A company will pay 4.5% per annum on a principal of AUD$200 million over the period of 180 days. The forward rate is 5.2% per annum in this Australian dollar Forward Rate Agreement FRA). Calculate the value of this FRA from the perspective of the company using Australian convention. All the rates given in this question are continuously compounded. ________

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The Answer of A company will pay 4.5% per annum on a principal of AUD$200 million over the period of 180 days. The forward rate is 5.2% per annum in this Australian dollar Forward Rate Agreement FRA). Calculate the value of this FRA from the perspective of the company using Australian convention. All the rates given in this question are continuously compounded. ________

A Company Will Pay 4