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A) You are requested to compute forward rate for the period between the following two points of time Maturity years 2 = rate( annum) 3.50%

A) You are requested to compute forward rate for the period between the following two points of time

Maturity years 2 = rate( annum) 3.50%

Maturity years 5 = rate( annum) 8.00%

B) If you have an investment of RM50,000 invested at the estimated forward rate in (a) with continuous compounding for years, how much will it grow

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