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7- Consider the Forward interest rates defined by the following equation: = 0.09 + (0.002)*(t) (0.002)*(t)^(2), where t = 0, 1, 2, 3, 4. ft,
7- Consider the Forward interest rates defined by the following equation: = 0.09 + (0.002)*(t) (0.002)*(t)^(2), where t = 0, 1, 2, 3, 4. ft, tt1 t, t+1 i) Find the Spot rate with a 4-year term: S.... 4 ii) Find the Forward rate that goes from 2 years to 5 years: f2.5
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