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How impelment the rate? Implied Forward Rates $+) is the implied forward rate for time x to An investor investing for 2 years, C+01 11,2

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Implied Forward Rates $+) is the implied forward rate for time x to An investor investing for 2 years, C+01 11,2 Tanr,1) Earn implied forward water (1,2) Time Eam 0, 2) per year [1 /0, 2310 4. AV Implied Forward Rates >> . Two investment alternatives should result in the same payoff one year Tatrace value [I ] x [1+,(0,2 , 8+1+7,00,2) In general: [1+r,(4,12)}x[1+r,(0,4;))' = [1+r,(0,1))} Bent price. [l+%(217) - {1+r;(0,4} _P(0.4) decem ) Lit 141.07 Implied Forward Rates $+) is the implied forward rate for time x to An investor investing for 2 years, C+01 11,2 Tanr,1) Earn implied forward water (1,2) Time Eam 0, 2) per year [1 /0, 2310 4. AV Implied Forward Rates >> . Two investment alternatives should result in the same payoff one year Tatrace value [I ] x [1+,(0,2 , 8+1+7,00,2) In general: [1+r,(4,12)}x[1+r,(0,4;))' = [1+r,(0,1))} Bent price. [l+%(217) - {1+r;(0,4} _P(0.4) decem ) Lit 141.07

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