Forward Rate Agreement: An over-the-counter, bilateral forward contract setting a fixed rate of interest, or currency exchange rate, to be paid/received on an obligation beginning at a future start date. An FRA differs from a swap in that payment is made only once, at maturity - a single payment (the differential between the fixed and variable rates).

Obligation
Swap
Payment
Maturity
Payment
Forward Rate Agreement in our glossary: terms and definitions

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Forward Rate Agreement at globalcustody.net