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Question 1: Maturity Zero-Coupon Rates (treasuries) 12% 11.75% 11.00% 1 2 3 Your friend would like to borrow money from you for one year at

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Question 1: Maturity Zero-Coupon Rates (treasuries) 12% 11.75% 11.00% 1 2 3 Your friend would like to borrow money from you for one year at the end of the second year - what would be the appropriate forward rate? Assume that your friend is not going to default on your agreement

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