forward rate agreement

forward rate agreement definition - finance
The over-the-counter equivalent of the Eurodollar futures contract. The FRA represents an interest rate similar to that indicated by a futures contract. FRAs are quoted on a money market yield basis, which uses the actual number of days in a month and a 360-day year.

Webster's New World Finance and Investment Dictionary Copyright © 2003 by Wiley Publishing, Inc., Indianapolis, Indiana.
Used by arrangement with John Wiley & Sons, Inc.

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