Question: Exercise 2 please ( show working n make a table in excel ) please An industrial Company located in Brussels will need 1 , 0
Exercise please show working n make a table in excel please
An industrial Company located in Brussels will need EUR next year.
If they got the loan today, the interest rate the bank offers is and the loan is to be paid back in only one payment after one year.
Since the finance manager of that company fears that next year when the Co will get the loan the interest rate will rise, the Co accepts a Forward Interest Rate Agreement for a
Question a: In case that, at origin next year the interest rate rises to how much money will the company gainloose with this FRA agreement?
Question b: In case that, at origin next year the interest rate rises up to how much money will the company gainloose with this FRA agreement?
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