Problemon january 8 2016 a bank wants to lock in the, Ask an Expert

Finance

Problem:

On January 8, 2016, a bank wants to lock in the 3-month interest rate starting on June 20, 2017. Currently, 6/2017 Eurodollar futures price is 94.93 and 9/2017 Eudollar futures price is 97.55.

Required:

What is the interest rate that the bank can lock in? (Margin of error: +/- 0.01%) explain in detail.

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Basic Finance, Finance

Category:- Basic Finance
Reference No.:- M91146298

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