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- PUP inning face QUESTION 15 A 5.8% Suppose that the 1-year, 2-year, 3-year, and 4-year spot rates are observed as follows: 11-7.6%, 12-8.1%, 13-8.8%,
- PUP inning face QUESTION 15 A 5.8% Suppose that the 1-year, 2-year, 3-year, and 4-year spot rates are observed as follows: 11-7.6%, 12-8.1%, 13-8.8%, r4=10.2%, whbat must be the forward rate in year 4 under the liquidity preference theory if the liquidity premium is 0.28%? a. 16.54% O b. 14.51% O c. 14.23% O d. 16.26% 6.4% 7.1% 7.3% 7.4%
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International Finance
Authors: Maurice D Levi
5th Edition
0415774594, 9780415774598
