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f1,2 is also NOT 5.7% Consider the following spot interest rates for maturities of one, two, three, and four years. ri = 4.78 r2 5.2%

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f1,2 is also NOT 5.7%

Consider the following spot interest rates for maturities of one, two, three, and four years. ri = 4.78 r2 5.2% r3 = 5.98 r4 = 6.7% What are the following forward rates, where f9, k refers to a forward rate for the period beginning in one year and extending for k years? (Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places.) Answer is complete but not entirely correct. 11,1 f1,2 f1,3 4.70 % 5.20 % 7.31 %

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