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FRA

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA FM Exams › FRA

  • This topic has 1 reply, 2 voices, and was last updated 1 year ago by John Moffat.
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  • Author
    Posts
  • July 22, 2021 at 8:26 am #629087
    Christie9693
    Participant
    • Topics: 23
    • Replies: 7
    • ☆

    Have a doubt in BPP Interest rate risk (chapter 20)
    4.2.2. Example Forward rate agreement

    My doubt is why are we locking in to a rate of 6% (relevant FRA rate) instead of 6.25% (which is the current 6 month FRA rate)?

    July 22, 2021 at 3:59 pm #629129
    John Moffat
    Keymaster
    • Topics: 56
    • Replies: 51585
    • ☆☆☆☆☆

    I do not have the BPP Study Text, only the Revision Kit, and so I cannot help you.

    (If you are watching our free lectures then you do not really need the Study Text. The essential book is the Revision Kit because it is full of past exam and other exam standard questions for practice, which is vital to passing the exam.)

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