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Given the Forward and Spot rates below what would the 3 year spot rate be? Draw it out first on a timeline 5.0% = 1-yr
- Given the Forward and Spot rates below what would the 3 year spot rate be? Draw it out first on a timeline
- 5.0% = 1-yr SPOT
- 4.40% = 1-yr FWD rate, 1-year forward (a 1-year rate that begins in 1-year)
- 4.00% = 1-yr FWD rate, 2-years forward
- If the 1-year spot rate is 3.5% and the 4-year forward rate, 1-year forward is 4.2%, then what is the 5-year spot rate?
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International Finance Transactions Policy And Regulation
Authors: Hal S. Scott
15th Edition
159941547X, 978-1599415475
