The Fixed Rate on an FRA Expiring in 30 Days

question 4

Multiple Choice

The fixed rate on an FRA expiring in 30 days on 180-day LIBOR with the 30-day rate being 5 percent and the 210 day rate being 6 percent is

• A)6 percent
• B)6.14 percent
• C)5 percent
• D)5.5 percent
• E)5.15 percent

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Definitions:

Electrical Noise

Unwanted variations in an electrical signal that can degrade the performance of electronic circuits.

Voltage Spike

A sudden, brief increase in voltage significantly above the normal level, potentially harmful to electrical equipment.

DC Resistive Load

A load that resists current in a direct current (DC) circuit, typically through the dissipation of energy in the form of heat.

Potential Noise

Refers to possible electromagnetic disturbances that may disrupt or degrade the performance of electronic devices or systems.