Interest rate forward: (forward rate agreement FRA) : the forward rate agreement is the most basic of the OTC interest rate contract.

For example, when banks lend moneyto the firm, they insist on a formal contract stating the rate of interest andrepayment dates, perhaps placing restrictions on dividends or additionalborrowing.

But a series of financial crises made it clear in credit market non-price terms of contract can also play an important role to the equilibrium of credit market as well as interest rate.