discount factor for FRA

Is it set in the contract?

I think for a FRA you use the actual Floating rate (sometimes they say ‘expected’, but whatever) to discount the end payout back to the beginning of the loan. Then if you still need to discount back to a previous time, use the RFR.

Key is to remember that the FRA payoff is at the end of the loan period. SO discount using rate applicable at the time the loan is taken out. Then further discount to the present time using RFR.

yeah, but if FRA is stroke at libor why would i disount at LIBOR and not Rfr?