17. Forward Rates (LO3, CFA8) The current one-year interest rate is 6 percent and the current two-year

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17. Forward Rates (LO3, CFA8) The current one-year interest rate is 6 percent and the current two-year interest rate is 7 percent. What is the implied forward rate for next year’s one-year rate?

a. 9 percent

b. 8 percent

c. 7 percent

d. 6 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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