I'm not sure if FRAs should be calculated with annual interest or with monthly interest. Example:
Amount : 10.000
Interest rate contracted: 10% per annum.
Period-term to 3 months within 3 months.
Interest rate in the market within 3 months: 1% monthly.
So this is a: $FRA(3,6)$
Should I convert the $10$% to quarterly interest and the $1$% to quarterly interest, or the $1$% to annual, in order to solve this FRA?