A trader has entered into a forward rate agreement in which it will receive 4.5% based on
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Question:
A trader has entered into a forward rate agreement in which it will receive 4.5% based on quarterly compounding for a three-month period starting in 9 months.The notional value of the forward rate agreement is $10,000,000.Note that the spot zero rates in the table below are based upon continuous compounding.
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