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Suppose that the prices of zero - coupon bonds with various maturities are given in the following table. The face value of each bond is
Suppose that the prices of zerocoupon bonds with various maturities are given in the following table. The face value of each bond is
$
a Calculate the forward rate of interest for each year. Round your answers to decimal places.
b How could you construct a year forward loan beginning in year Round your Rate of synthetlc loan answer to decimal
places.
c How could you construct a year forward loan beginning in year Round your Rate of synthetlc loan answer to decimal
places.
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