A Forward Rate Agreement (FRA) is a contract where
an agreed interest rate Rk applies to an agreed principal P for
an agreed period of time, say between Ts and Te. Normally the payoff
is computed without waiting the interest period, by computing the
future value of the FRA at Te, and using the actual rate R at Ts
to discount
the future value as follows:
Payment = P . (1 + Rk)(TeTs)/( R. (TeTs) )  P
The times Ts and Te must be computed using an agreed interest rate basis.
