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Payoff in advance

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Suppose that the payment on the FRA is in advance, that is, at day 30.

If at day 30, the 180 day LIBOR rate is 7%. On day 30 how much will the long pay to the short?

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The long pays interest at 6% to the short. The short pays interest at the 180 day LIBOR rate (market rate) at day 30 to the long.

Payoff to long = 2 ...

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