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Consider the forward interest rates defined by the following equation: fk = 0.09 + 0.002k 0.002k^2 for k = 0, 1, 2, 3, 4. 1)
Consider the forward interest rates defined by the following equation: fk = 0.09 + 0.002k 0.002k^2 for k = 0, 1, 2, 3, 4.
1) Find the 4-year spot rate
2) ) Find the 2 year deferred 3-year forward rate.
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