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Observe the spot bb corporate rates

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A lender is short on a 90-day FRA on the 180-day BB corporate bond yield. The agreed upon rate of the FRA contract is 15.7% and the notional amount is $500,000. 30 days after the lender entered the contract, the forward rate on a 60-day FRA on the 180-day BB corporate bond yield is 15.54. On this day you can observe the following spot BB corporate rates

Reference no: EM133114445

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