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Assuming annual compounding, if the 3-year and 4-year spot rates are respectively 4.5% and 6.2%, whats the 1-year forward rate beginning year 3 (3r4)? A.
Assuming annual compounding, if the 3-year and 4-year spot rates are respectively 4.5% and 6.2%, whats the 1-year forward rate beginning year 3 (3r4)?
| A. 1.63% | ||
| B. 1.70% | ||
| C. 7.93% | ||
| D. 9.68% | ||
| E. 11.47% |
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Fixed Income Securities Tools For Todays Markets
Authors: Bruce Tuckman, Angel Serrat
4th Edition
1119835550, 978-1119835554
