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Assume the current 6-month rate is 3.5% and the 6-month forward rates (all as BEYs) are those in the following table.Periods From Now Forward Rates

  • Assume the current 6-month rate is 3.5% and the 6-month forward rates (all as BEYs) are those in the following table.Periods From Now Forward Rates 1 3.8% 2 4.0% 3 4.4% 4 4.8%A、Calculate the corresponding spot rates.B、What is the value of a 1.5-year, 4% Treasury note?

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