Question
It is currently date 0. The 1-year rate of interest (between dates 0 and 1) is r 1 = 6% per year and the 2-year
It is currently date 0. The 1-year rate of interest (between dates 0 and 1) is r1 = 6% per year and the 2-year rate of interest (i.e. between dates 0 and 2) is r2 = 9% per year.
What reinvestment rate r1,2 for the second year (ibetween dates 1 and 2) can afirm lock in today at date 0?
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Smith and Roberson Business Law
Authors: Richard A. Mann, Barry S. Roberts
15th Edition
1285141903, 1285141903, 9781285141909, 978-0538473637
