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Consider the following spot interest rates for maturities of one, two, three, and four years. r1 = 4.4% r2 = 5.2% r3 = 5.9%
Consider the following spot interest rates for maturities of one, two, three, and four years. r1 = 4.4% r2 = 5.2% r3 = 5.9% r4 = 6.7% What are the following forward rates, where fk1 refers to a forward rate beginning in k years and extending for 1 year? Note: Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places. f2,1 13.11 % %
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Finance for Non Financial Managers
Authors: Pierre Bergeron
7th edition
176530835, 978-0176530839
