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Thanks job71188. You are indeed correct that this is a forward contract problem (Tbill in this case).

Correct me if I am wrong but I have noticed that any problems concerning FRA will explicitly use the term FRA in it. And at all times I have ended up using the following formula to figure out the payment to the long at settlement, i.e.:

notional principal * (interest difference bet ref and the forward rate/discount rate to the settlement date)

Cheers