Calculate the settlement amount that the borrower pays to the lender under a 1:4 FRA for a face value of $9,400,000. The agreed rate that the borrower will pay under the FRA is 4.2% pa and the market rate in 30 days is 4.6% pa. Assume that each period is 30 days long. Give your answer in dollars and cents to the nearest cent.

Answer rating: 100% (QA)

To calculate the settlement amount for the borrower under a 1x4 Forward Rate Agreement FRA we need t... View the full answer