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1. Forward interest rate from NOW to see the forward rate of year 4 for one year. 1R 1 = .553%, 2R 1 = .774%,

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1. Forward interest rate from NOW to see the forward rate of year 4 for one year. 1R 1 = .553%, 2R 1 = .774%, 3R 1 = .905%, 4R 1=1.280%. Then nf 1=?% O 2.4134 2.425 2.433 2.8996 3.050 3.056 2.06 3.07 > Moving to another question will save this response. 1. According to the Unbiased Expectation Theory, the first year's one year interest rate is R 1=1.94%,and the expected one year rates for the following years are as follows, respectively. El 27 1)=3%, El 31 1)=3.74% and E( 4 )=4.4%. The four year interest rate (given they are all default-risk free treasury securities), the four-year T Security interest rate is (annually) R =?% 4.0981 4.100 4,0723 4.123 4.1866 4.1650 4.256 4.0667

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