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COULD YOU HELP ME WITH C ONLY a . Calculate the one, two, and three - year spot rates. ( Do not round intermediate calculations.
COULD YOU HELP ME WITH C ONLY
a Calculate the one, two, and threeyear spot rates. Do not round intermediate calculations. Round the final answer to decimal
places.
b Calculate the forward rate over the second year, and the one corresponding to the third year. Do not round intermediate
calculations. Round the final answer to decimal places.
Forward rate over the year
Forward rate over the year
c Is the forward rate over the third year the same as the oneyear spot rate investors expect to prevail at the end of the second year?
Riskneutral investors
No
Riskaverse investors
Yes
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