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Question
You wish to create a synthetic forward rate agreement in which you would lock in a return between 150 and 310 days. The price of a 150-day zero coupon bond is 0.9823 and the price of 310-day zero coupon bond is 0.9634. What is the approximate yield on the synthetic FRA?A) 1.8%
B) 2.0%
C) 2.9%
D) 3.8%
Answer
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Related questions
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