What rate should you quote

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Reference no: EM132761496

Question: You are a bank and your customer asks you to quote an agreed-upon rate for a 3-month FRA that starts in 3 months. You observe the following rates:

3 months ( 90 days) rate: 3%;

6 months (180 days) rate: 4%;

9 months (270 days) rate: 5%.

What rate should you quote?

Reference no: EM132761496

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