A forward rate agreement (FRA) is a loan that starts in the future ("forward start loan") but where principal is not lent; instead, the notional is referenced to determine the interest paid. The FRA contract specifies a fixed rate of interest. The seller (buyer) is lending (borrowing) at the fixed rate.
David's XLS is here: https://trtl.bz/2Hueqmq
David's XLS is here: https://trtl.bz/2Hueqmq
Last edited: