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Q 16-3 Let yt denote the annual effective yield rate for zero coupon bonds with maturity t years. If yt is given by Yt 0.09

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Q 16-3 Let yt denote the annual effective yield rate for zero coupon bonds with maturity t years. If yt is given by Yt 0.09 +0.002t - 0.001t? , determine the 4-year forward rate, f4. > Answer: 4.745%

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