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Consider the following spot interest rates for maturities of one, two, three, and four years. r 1 = 5.6% r 2 = 6.2% r 3
Consider the following spot interest rates for maturities of one, two, three, and four years. |
r1 = 5.6% r2 = 6.2% r3 = 6.9% r4 = 7.7% |
What are the following forward rates, where f1, k refers to a forward rate for the period beginning in one year and extending for k years? f1,1 % f1,2 % f1,3 % Please don't answer unless you are sure that your answer is correct. |
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