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Assume that every 6 months the 6-month forward rate can either increase or decrease by 1%. I.e., today's 6-month forward rate is 6%; in 6

Assume that every 6 months the 6-month forward rate can either increase or decrease by 1%. I.e., today's 6-month forward rate is 6%; in 6 months the 6-month forward rate can be either 5% or 7%; and in...

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