Question: Please answer this accurately and pace yourself, I will thumbs up or down depending on results ABC Bank (seller) has made a three against six

Please answer this accurately and pace yourself, I will thumbs up or down depending on resultsPlease answer this accurately and pace yourself, I will thumbs up ordown depending on results ABC Bank (seller) has made a "three against

ABC Bank (seller) has made a "three against six" Forward Rate Agreement (FRA), with XYZ Bank (buyer). Assume that the: Notional Amount =$4,000,000 Settlement Rate (SR) (i.e., three-month market LIBRO) =5% Agreement Rage (AR)=6% Actual number of days in the three-month agreement period =91 XYZ Bank will pay ABC Bank a cash settlement at the beginning of the 91-day FRA period. XYZ Bank will pay ABC Bank a cash settlement at the end of the 91-day FRA period. ABC Bank will pay XYZ Bank a cash settlement at the end of the 91-day FRA period. ABC Bank will pay XYZ Bank a cash settlement at the beginning of the 91-day FRA period

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