The payment amount under this FRA is
A)$9,985.
B)$10,111.
C)$60,667.
D)$120,000.

Name: The payment amount under this FRA is A)$9,985. B)$10,111. C)$60,667. D)$120,000.
Brand: Quizplus
Rating: 4.8 (42 reviews)

Question

Quizplus · Accepted Answer

The payment amount under a Forward Rate Agreement (FRA) is calculated based on the difference between the agreed-upon interest rate and the actual interest rate at the time of settlement, applied to the notional principal amount. The correct choice is $9,985, which is the calculated payment amount based on the given terms of the FRA.

The Payment Amount Under This FRA Is