Index of [finpko.ku.edu]

The forward rate (expressed with continuous compounding) is from equation (4.5) or 5.6707%. When expressed with semiannual compounding this is or 5.7518%. The value of an FRA that promises to pay 6% for the six month period starting in 18 months is from equation (4.9) or $1,124. Problem 4.31. ................
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