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You bought a three-month FRA on $\$10$ million at $4\%$ . The reference rate fixes at $5\%$ for the $0.25$ -year period, and the FRA settles at the start of the period, discounted at the fixing rate. What do you receive, to the nearest dollar?

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Swaps, FRAs and interest parity

Reported in interviews at

Citadel, DRW

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You bought a three-month FRA on $10 million at 4%. · QuantMax

You bought a three-month FRA on $10\$10$10 million at 4%4\%4%. The reference rate fixes at 5%5\%5% for the 0.250.250.25-year period, and the FRA settles at the start of the period, discounted at the fixing rate. What do you receive, to the nearest dollar?

More time value, rates and linear products questions

You bought a three-month FRA on $\$10$ million at $4\%$ . The reference rate fixes at $5\%$ for the $0.25$ -year period, and the FRA settles at the start of the period, discounted at the fixing rate. What do you receive, to the nearest dollar?