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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: Compute the spot and forward

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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: Compute the spot and forward rates that complete the table. Show your work below. Suppose you observe the spot rates in the table above. What can you say about investors' expectations for future interest rates based on the liquidity premium theory

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