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0.5 17. The current spot interest rate curve is given by the following table: t 0.25 0.75 1 1.25 1.5 1.75 2 rt 1.4% 1.7%
0.5 17. The current spot interest rate curve is given by the following table: t 0.25 0.75 1 1.25 1.5 1.75 2 rt 1.4% 1.7% 1.9% 2.4% 2.8% 3.1% 3.2% Given the 6-month forward rate deferred one year is equal to 4.11%, determine the 1-year spot rate r. r A) 2.15% B) 2.20% C) 2.25% D) 2.30% E) 2.35% 0.5 17. The current spot interest rate curve is given by the following table: t 0.25 0.75 1 1.25 1.5 1.75 2 rt 1.4% 1.7% 1.9% 2.4% 2.8% 3.1% 3.2% Given the 6-month forward rate deferred one year is equal to 4.11%, determine the 1-year spot rate r. r A) 2.15% B) 2.20% C) 2.25% D) 2.30% E) 2.35%
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