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Given annual effective spot rate r2=5% and forward rate f[2,3]=7%. Calculate f[1,3]. Possible Answers A 6% B 6.5% C 7% D 12.35% E Cannot be

Given annual effective spot rate r2=5% and forward rate f[2,3]=7%. Calculate f[1,3].

Possible Answers

A 6%

B 6.5%

C 7%

D 12.35%

E Cannot be determined based on the given information

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