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Section A. If the one year spot rate is 4% and the forward rates for years 2, 3, 4, 5 are 5%, 7%, 8%, and
Section A. If the one year spot rate is 4% and the forward rates for years 2, 3, 4, 5 are 5%, 7%, 8%, and 6%, respectively, then today's interest rate on a five-year bond should be : 4% 5% 6% 7% 8% On...
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