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20 million FRA payoff at expiration doubt!

Dear Forum,

I have a doubt suppose this situation I enter in a long FRA with a contract rate of 5% and a notional of 20 million USD, at the expiration the 180 day libor is 5,75% and the agreement expires in 60 days. the answer is 

a) I receive 75000 usd

B) I receive 72932

C) A and B are both Wrong, If it is the case I would apreciate if you could explain the right answer

Thanks for the advice in advance,

You’re ready to take on the CFA® Program, so stop guessing where you should begin. You give us your study dates, we’ll give you the study plan. Our adaptive activity feed breaks down your 300 hours into bite-sized weekly tasks that fit into your life.

You’re long, so you pay fixed, receive floating.

The payoff is (5.75% − 5%) × $20,000,000 = $150,000, 240 days after inception (= 60 days + 180 days); the payoff at expiration is $150,000 / [1 + (5.75% × 180/360)] = $145,808.

There you go.

Simplify the complicated side; don't complify the simplicated side.

Financial Exam Help 123: The place to get help for the CFA® exams
http://financialexamhelp123.com/

thanks for the explanation

You’re welcome.

Simplify the complicated side; don't complify the simplicated side.

Financial Exam Help 123: The place to get help for the CFA® exams
http://financialexamhelp123.com/