1 answer

The LIBOR rates today for 2 and 6 months are 5.0% and 6.0%, respectively. If the...

Question:

  1. The LIBOR rates today for 2 and 6 months are 5.0% and 6.0%, respectively. If the 3×6 FRA contract initiated today has the rate of 5.5%, what should be the LIBOR rates today for 3 months? Assume all rates are continuously compounded annual rates.

    A. 7% B. 5% C. 5.5% D. 6% E. 6.5%


Answers

utially Ahe FRA of bo ties Soud ero FRA Nate fo ae (6 cadr 6warts 2t nodewaty) 3 xo.06 o.osi 3 S D06 nect Gpfion

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