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UltraPower Utilities Inc has just entered into a forward rate agreement FRA with CIBC whereby the latter agreed to lend million to the former for a twoyear period effective nine months from now Curre

UltraPower Utilities Inc has just entered into a forward rate agreement FRA with CIBC whereby the latter agreed to lend  million to the former for a twoyear period effective nine months from now Currently we observe the following spot rates Horizon all continuously compounded in annual terms a What is the fair contract rate b Supposing that after six months the new term structure is the following Horizon  Rate  all

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Feb 14 2020 View more View Less

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