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Given the following two sequences of spot rates. Time-to-Maturity Spot Rates A Spot Rates B 1 year 2.8% 4.2% 2 years 3.3% 3.8% 3 years
- Given the following two sequences of spot rates.
Time-to-Maturity Spot Rates A Spot Rates B
1 year 2.8% 4.2%
2 years 3.3% 3.8%
3 years 3.7% 3.2%
4 years 4.3% 3.0%
5 years 4.6% 2.9%
Calculate f(2,1), f(3, 1), f(2, 2), f(2, 3), and f(1,4) using the above sequences of rates.
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