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please answer both, its urgent 3. The two year spot rate is 6% and the five year spot rate is 8%, calculate the value of

image text in transcribed please answer both, its urgent

3. The two year spot rate is 6% and the five year spot rate is 8%, calculate the value of R1 that occurs in five year's time. a. 1.0935 b. 9.35% c. 0.9145 d. 0.64 e. 0.68 SCHOOL OF ECONOMIC AND BUSINESS SCIENCES. CORPORATE FINANCE II (BUSE 2000/BUSE2001) EXAMINATION, 29 MAY 2017 Page 2 of 20 4. The 6 year discount factor is 0.5645 and the 8 year discount factor is 0.5019. According to the expectations theory, what is the expected two year rate in six years' time? a. 9.36% b. 12.47% c. 0.89 d. 8% e. 6.05%

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