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Can you write it down on paper instead of doing it in excel? Assume the following Treasury spot rates (compounded annually): Period 1 2 3
Can you write it down on paper instead of doing it in excel?
Assume the following Treasury spot rates (compounded annually): Period 1 2 3 4 5 6 7 8 Years to maturity 0.5 1.0 1.5 2.0 2.5 3.0 3.5 4.0 Spot rate (%) 5.0 5.4 5.8 6.4 7.0 7.2 7.4 7.8 Compute the following forward rates: a) the 6-month forward rate 3 years from now. b) the 1.5-year forward rate two years from nowStep by Step Solution
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