- This topic has 1 reply, 2 voices, and was last updated 8 months ago by .
- You must be logged in to reply to this topic.
Congratulations to Jamil from Pakistan and Jeeva from Malaysia - Global Prize winners!
see all ACCA December 2022 Genius Hunt Competition winners >>
Specially for OpenTuition students: 20% off BPP Books for ACCA & CIMA exams – Get your BPP Discount Code >>
Hello sir John,
The technical article on interest rate forwards to value a simple interest rate swap contract. According to it we do a FRA in order to hedge against increasing interest rates.
My question is, as we already did a FRA then why are we also using a Swap contract?
The article is not saying that they will use FRA’s in addition to doing a swap.
It is saying that it is the forward interest rates that will have been used to determine the interest rate given by the swap.