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Consider that the spot rate for a treasury with 1 years and 1.5 years to maturity is 4.00% and 5.00% respectively. Calculate the six-month forward

Consider that the spot rate for a treasury with 1 years and 1.5 years to maturity is 4.00% and 5.00% respectively. Calculate the six-month forward rate starting in the 1st year.

A. 5%

B. 7%

C. 6%

D. 4%

E. 1%

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