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Question If the one-year spot rate is equal to x and the one-year forward rate deferred one year is equal to y, select the equation
Question If the one-year spot rate is equal to x and the one-year forward rate deferred one year is equal to y, select the equation that would be used to calculate the two-year spot rate: Possible Answers A (1 + x)(1 + y) 1 B 1 (1 + x)(1 + y) (1 + x) (1 + y) 1 D (1 + y) (1 + x) 1 E none of the above
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