The elements of an FRA are the ________.

Question

Quizplus · Accepted Answer

The elements of a Forward Rate Agreement (FRA) include the contract rate (the agreed-upon interest rate), reference rate (the benchmark interest rate used for the contract, often LIBOR or another), settlement rate (the actual rate at the settlement date, compared against the contract rate to determine cash settlement), notional amount (the hypothetical principal amount upon which interest calculations are based, as no principal is exchanged in an FRA), and settlement date (the date on which the difference is paid or received).

The Elements of an FRA Are the ________