Forward rate agreement (FRA)

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Uploaded by on May 13, 2008

An FRA is a contract that lets the buyer (who is long the rate) lock-in an interest (borrowing) rate. In this example, the FRA buyer locks in LIBOR at 3%

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Uploader Comments (bionicturtledotcom)

  • Great work you explained very well as compared to My University teacher...

  • @downvidu thank you i really appreciate your kind feedback

Top Comments

  • David, thanks for posting this. Would encourage people to stick with this video as it improves considerably towards the end. The beginning IMHO could be a bit clearer, but towards the end it rocks!

    Would be good to explain what interest rate is used at settlement to calculate NPV . It would also be useful to have a practical use of why you would use a FRA in a real world scenario.

    Good vid,would recommend.

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All Comments (33)

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  • great explanation! always enjoy your videos. they are my most productive use of YouTube ;)

  • thanks! was struggling to understand this on my own based on notes. you explained it perfectly.

  • Great explanation David. Much clearer than some of the CFA study material.

    Jonas

  • amazin video thanks bionic turtle

  • thanks!! your demonstration saved me a LOT of time to understand the concepts!!

  • DnT READ THIS CAUSE IT ACTUALY WORKS. YOU WILL GET KISSED ON THE NEAREST POSSIBLE FRIDAY BY THE LOVE OF YOUR LIFE. TOMMORROW WILL BE THE BEST DAY OF YOUR LIFE.HOWEVER IF YOU DONT POST THIS COMMENT ON AT LEAST 3 VIDEOS YOU WILL DIE WITHIN TwoDAYS.NOW YOU STARTED READING THIS DONT STOP THIS IS SO SCARY.PUT THIS ON AT LEAST FIVE VIDEOS IN 143 MINUTES WHEN UR DONE PRESS F6 AND UR LOVERS NAME WILL APPEAR IN BIG LETTERS. THIS IS SO SCARY CAUSE IT WORKS

  • THANK YOU so much!! you explained this WAY better than my university lecturer!! :))

  • Thank you .. I am paying lot of money as CFA coaching and those professors arent explaining half as good as you! Repect!

  • spot on. very clear, thanx very much

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