in an fra, the buyer agrees to pay the seller group of answer choices the increased interest cost on a notional amount if interest rates rise above an agreement rate. the increased interest cost on a notional amount if interest rates fall below an agreement rate. the increased interest cost if interest rates increase above the agreement rate. none of the options

In FRA, the buyer agrees to pay the seller if the increased interest cost is on a notional amount if interest rates fall below an agreement rate. Option B

What does the interest cost?

Generally, The total amount of interest that a borrower will pay for the duration of the loan is referred to as the interest cost. When calculating interest charges, negative points and rebates should be removed from those totals.

An examination of a loan takes into account a number of factors in addition to interest expenses; some of these other factors include opportunity costs, tax advantages, and closing fees, among others.

In conclusion, In a FRA, the buyer makes a commitment to pay the seller an agreed-upon sum in the event that interest rates drop below the agreement rate, resulting in a higher cost of interest on a notional amount. Alternative B