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Question: ms rachel just entered an fra 6 months ago to...

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Ms. Rachel just entered an FRA 6 months ago to borrow $5,000 at 4%, which expires in the next 3 months. The loan will expire in the next 3 months. She found that the equivalent FRA in the market is currently quoted at 5%. The 6 month interest rate is 3.75%. What is the value of FRA contract?

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