Use Table 15.1 to find the short rate that will prevail in the fourth year. Confirm that

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Use Table 15.1 to find the short rate that will prevail in the fourth year. Confirm that the discount factor on the 4-year zero is a geometric average of 11 the short rates in the next 4 years.

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Investments

ISBN: 9780073530703

9th Edition

Authors: Zvi Bodie, Alex Kane, Alan Marcus

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