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1. Two banks want to trade a 6x24 month forward rate agreement. The continuously compounded spot rates are: 6 months: 5%, one year: 5.1%, 18

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1. Two banks want to trade a 6x24 month forward rate agreement. The continuously compounded spot rates are: 6 months: 5%, one year: 5.1%, 18 months: 5.4%, and two years: 5.5%, all stated as annual rates. What rate will the banks use in their forward rate agreement

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