What is the payoff on the agreement

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There is a 3-month (assume 90 days) LIBOR based forward rate agreement with a notional of $25mm and fix a rate of 3.25% between two parties. 3-Month LIBOR rates rise to 4.00% at expiration. What is the payoff on the agreement(Do not worry about which party is long or short-just the net payments between 2 parties)?

Reference no: EM132406836

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