A "three against nine" forward rate agreement
A) could call for a buyer to sell a six-month Eurobond in three months at prices agreed upon today.
B) could call for a buyer to pay the seller the increased interest cost on a notational amount if six-month interest rates fall below an agreed rate beginning three months from now and ending nine months from now.
C) is a forward contract on a three-month Eurobond with a nine-month maturity.
D) is a forward contract on a nine-month Eurobond with a three-month maturity.
Correct Answer:
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Q81: The payment amount under this FRA is
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B)$10,111.
C)$60,667.
D)$120,000.
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