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Problem 6.5 You are given the following term structure of spot rates: year spot rate 5.0 % | 5.75 % 3 | 6.25 % 4

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Problem 6.5 You are given the following term structure of spot rates: year spot rate 5.0 % | 5.75 % 3 | 6.25 % 4 | 6.5 % A three year annuity-immediate will be issued a year from now with annual payments of 5,000. Calculate the today's price (present value) of this annuity by using the above spot rates and implied forward rates

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