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QHW3 Assume you can borrow and lend at the rate implicit in the discount factor estimated in the market below: NarbitB([[105,0,0],[10,110,0],[8,8,108]],[94,97,85],5,d); 1 1 point The

image text in transcribedimage text in transcribed QHW3 Assume you can borrow and lend at the rate implicit in the discount factor estimated in the market below: NarbitB([[105,0,0],[10,110,0],[8,8,108]],[94,97,85],5,d); 1 1 point The forward rate from time 2 to time 3 is 2 1 point Can you take actions in the market by borrowing and lending at time 0 that effectively secures at time 0 a rate of a loan taken at time 2 to be returned at time 3? If it is possible what is the rate of this loan? 0.5 points The discount factors for time 3 based on the yield and as solved by the procedures are the same (state your answers based on the number as produced by Maple - do not truncate it) True False 0.5 points The discount factors for time 2 based on the yield and as solved by the procedures are the same (state your answers based on the number as produced by Maple - do not truncate it) True False

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