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Suppose that the observed spot yield curve and implied forward rates for risk-free zero coupon bonds are as given below: Maturity (years) Yield Forward Rate

Suppose that the observed spot yield curve and implied forward rates for risk-free zero coupon bonds are as given below:

Maturity (years)

Yield

Forward Rate

1.25

-----

S₂=

2.0516

2.25

f₃=

S₄=

4.6712

What is the value ofS_4?S4=

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