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Suppose that the spot rate E is equal to 1. What is the forward rate F at 3 months? 4 Points 1.005 1.01 0.985 0.995

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    Suppose that the spot rate E is equal to 1. What is the forward rate F at 3 months?

    4 Points

  2. 1.005

  3. 1.01

  4. 0.985

  5. 0.995

Term Structure of Interest Rates 6% 4% 2.5% 2% 1.5% 3 months months 4 6 months Term Structure of Interest Rates 6% 4% 2.5% 2% 1.5% 3 months months 4 6 months

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