In an FRA on an m-day rate,payment is made when the interest rate is determined rather than m days later.

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In an FRA, the payment is made when the interest rate is determined on the settlement date rather than m days later. This is because an FRA is a forward contract where two parties agree to exchange a fixed interest rate on a notional amount for a floating interest rate on the same notional amount, calculated over a specified period in the future. The settlement date is the date on which the fixed rate is compared to the prevailing market rate to calculate the settlement amount. Therefore, the payment is made on the settlement date and not m days later.

In an FRA on an M-Day Rate,payment Is Made When