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4. The time-0 forward rate for borrowing and lending starting at year 1 and ending at year 4,f(1,4), is 9% and the 4 -year yield

4. The time-0 forward rate for borrowing and lending starting at year 1 and ending at year 4,f(1,4), is 9% and the 4 -year yield is 7%. What is the current one-year spot rate (with continuous compounding)? (a) 1% (b) 3% (c) 5%

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