This problem has been solved!

Do you need an answer to a question different from the above? Ask your question!

# Two banks want to trade an 18x24 month forward rate agreement. The continuously compounded zero spot rates are 6 months: 5.2%, one year: 5.3%, 18 months: 5.4%, and two years: 5.5%, all stated as annual rates. What rate will the

- Two banks want to trade an 18x24 month forward rate agreement. The continuously compounded zero spot rates are 6 months: 5.2%, one year: 5.3%, 18 months: 5.4%, and two years: 5.5%, all stated as annual rates.
**What rate will the banks use in their forward rate agreement?**

- Expert Answer

## Forward rate agreement rate 1 24 m View the full answer

**Related Book For**

Post a Question and Get Help

Cannot find your solution?

Post a FREE question now and get an answer within minutes*.

*Average response time.