Suppose you wanted to lock in an interest rate for an investment that begins in one year

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Suppose you wanted to lock in an interest rate for an investment that begins in one year and matures in five years. What rate would you obtain if there are no arbitrage opportunities?

Maturity (years) 1 2 3 4 5 Zero-coupon YTM 4.0% 5.5% 5.5% 5.0% 4.5%.

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Corporate Finance The Core

ISBN: 9781292431611

5th Global Edition

Authors: Jonathan Berk, Peter DeMarzo

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