You entered into a long 3 × 6 forward rate agreement on a notional amount of $10,000,000 at an agreement rate of 3 percent. Suppose at the settlement date of the FRA, the settlement rate is 3.5...

You entered into a long 3 × 6 forward rate agreement on a notional amount of $10,000,000 at an agreement rate of 3 percent. Suppose at the settlement date of the FRA, the settlement rate is 3.5 percent. What is the cash settlement of the FRA?

Net payment of $12,391.57 to you

Net payment of $12,500 to you