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Choose the answer to complete the following sentence. Assume that you are comparing BEYs (all rates are stated as annual rates). If the 1 year

Choose the answer to complete the following sentence. Assume that you are comparing BEYs (all rates are stated as annual rates).

If the 1 year spot rate is higher than the 6 month spot rate, the 6 month forward rate will be ______________________ the 1 year spot rate.

Group of answer choices

equal to

less than

The answer cannot be determined with the information given

greater than

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