What is the value of the lender fra

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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 15.57% 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 12.49. On this day you can observe the following spot BB corporate rates:

60-day: 10%

90-day: 11%

120-day: 12%

150-day: 13%

180-day: 14%

240-day: 15%

270-day: 16%

What is the value of the lender's FRA (in dollars, rounded to two decimals)?

Reference no: EM132477799

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