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Maturity (T) r (1) r (2) r (3) r (4) r (5) r (6) r (7) r (8) r (9) r (10) Spot Rate (%)
| Maturity (T) | r(1) | r(2) | r(3) | r(4) | r(5) | r(6) | r(7) | r(8) | r(9) | r(10) |
| Spot Rate (%) | -0.47 | -0.56 | -0.54 | -0.48 | -0.38 | -0.33 | -0.22 | -0.09 | 0.06 | 0.19 |
Using the data in the table above, calculate the forward rate for a 3-year loan beginning in 4-years. Show all working and formulas used.
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Auditing And Assurance Services
Authors: William Messier, Steven Glover, Douglas Prawitt
8th Edition
