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Based on arbitrate arguments give two interpretations for each of the following three forward rates: a. The 1-year forward rate seven years from now is
Based on arbitrate arguments give two interpretations for each of the following three forward rates:
a. The 1-year forward rate seven years from now is 6.4%
b. The 2-year forward rate one year from now is 6.2%
c. The 8-year forward rate thee years from now ins 7.1%
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