10. Forward Rates (LO3, CFA8) An analyst gathered the following spot rates: Time (years) Annual Spot Rate...

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10. Forward Rates (LO3, CFA8) An analyst gathered the following spot rates:

Time (years) Annual Spot Rate 1 15.0%

2  12.5  

3  10.0  

4 7.5 The one-year forward rate two years from now is closest to:

a. −4.91 percent

b. 5.17 percent

c. 10.05 percent

d. 7.5 percent

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Fundamentals Of Investments Valuation And Management

ISBN: 9781260013979

9th Edition

Authors: Bradford Jordan, Thomas Miller, Steve Dolvin

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