This formula focuses on solving for one-year rates only. However, practitioners construct the entire implied future yield
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This formula focuses on solving for one-year rates only. However, practitioners construct the entire implied future yield curve. The general formula that allows solving for forward rates beyond the one-year maturity, K, is as follows:
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Related Book For
Financial Markets And Institutions
ISBN: 9781259919718
7th Edition
Authors: Anthony Saunders, Marcia Cornett
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