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Spot rate for maturity ranging from 1-6 years are shown in the table below: Maturity Spot Rate 1 4.0% 2 4.25% 3 4.75% 4
Spot rate for maturity ranging from 1-6 years are shown in the table below:
| Maturity | Spot Rate |
| 1 | 4.0% |
| 2 | 4.25% |
| 3 | 4.75% |
| 4 | 5.25% |
| 5 | 6.0% |
| 6 | 6.55% |
- 1) What is today's 1- year forward rate at the end of the year 5? In another words, what is r5,6?
- 2) What is today's 2 year forward rate at the end of year 3? In another words, what is r3,5?
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Financial Management for Public Health and Not for Profit Organizations
Authors: Steven A. Finkler, Thad Calabrese
4th edition
133060411, 132805669, 9780133060416, 978-0132805667
