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hi everyone its marking so today were going to talk about forward rate agreements now for Drain agreements are basically a derivative instrument that will enable you to lock in an interest rate that will apply to debt that youre going to undertake in the future so if its going to go over what forward rate agreements are were going to go over calculating the cash flows through involved in these agreements and the payments that need to be made and then were going to go over a few examples involving forward rate agreements okay so lets have a look at what a forward rate agreement actually is now a forward rate agreement is a contract between two parties and what it basically involves is a rate of interest that will be paid on borrowing will be undertaken in the future so the party is locking the rate of interest that will be applicable to borrowing in some future time period and will be applicable to borrowing for a predetermined length so it isnt over-the-counter contract and ther