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Explain interest savings-loss

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You need to borrow $ 500,000 in 60 days time for a period of 120 days and the following Spot rates are given: MaturitySpot Rate60 days 5.00%120 days 5.20%180 days 5.40%240 days 5.60%In 60 days time, the then spot rate for a 120 day maturity is 5.70%. Your cost of money is 10%..

Your interest savings/loss as a result of you securing a FRA in PV terms is:

Reference no: EM132932912

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