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If the forward rate for year 1, f0,1= 6.0%, the forward rate for year 2, f1,2 = 6.3%, the forward rate for year 3, f2,3

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If the forward rate for year 1, f0,1= 6.0%, the forward rate for year 2, f1,2 = 6.3%, the forward rate for year 3, f2,3 = 7.0% and the forward rate for year 4 f3,4 = 8.5%, determine the four-year spot rate. Hint: the spot rate is an annual rate. 5.37% 6.43% 3.92% 4.43% 6.95%

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