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Please fill in the beige parts using the formula above. A Forward Rate represents a future interest rate between two points in the future, i.e.

image text in transcribed Please fill in the beige parts using the formula above.

A Forward Rate represents a future interest rate between two points in the future, i.e. the 7 year interest rate starting three years from now. As such it is the rate from year 3 to year 10 Forward Rate Formula: Forward Rate =(R2T2R1T1)/(T2T1) where: R2 is the longer Rate T2 is the longer Time R1 is the shorter Rate T1 is the shorter Time What is the 5 -yr rate starting in year 5

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