If labour for six month is 5 then how much do they pay

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Reference no: EM132014077

Suppose that KF Exports enters into an FRA with Interfirst Bank with a notional principal of $55 million and the following terms:

In six months, if LIBOR is above 5% then KF will pay Interfirst according to the standard FRA formula; on the other hand, if LIBOR is less than 5% then Interfirst will pay KF.

If LIBOR is 4.5% in six months, then who pays and how much do they pay? Round your answer to the nearest dollar. ____ will pay _____ $ _______

What if LIBOR is 5.5%? Round your answer to the nearest dollar. _____ will _____ pay $ _______

Reference no: EM132014077

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