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Business, 22.07.2021 17:30 kelly1027

The 3-month and 6-month LIBOR spot rates are 0.5% and 0.8%, respectively (assume continuous compounding). An investor enters into a forward rate agreement (FRA) in which he will receive 1.3% (assuming quarterly compounding) on principal of $2,500,000 between months 3 and 6. What is the value of the FRA?

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The 3-month and 6-month LIBOR spot rates are 0.5% and 0.8%, respectively (assume continuous compound...
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