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In your opinion, what does forward interest rate capture? Why do you think it is important to know the forward rate? Assume that as of
- In your opinion, what does forward interest rate capture? Why do you think it is important to know the forward rate? Assume that as of today we have an annualized two-year interest rate of 11 percent, while the current one-year interest rate is 9 percent. Given this information, estimate the one-year forward rate and describe how you got the answer.
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Financial Accounting
Authors: Paul D. Kimmel, Jerry J. Weygandt, Donald E. Kieso
2nd Edition
047116920X, 978-0471169208
