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Suppose the 5 - year spot interest rate is 8 % and the 2 - year spot rate is 5 % . The forecasted 1

Suppose the $5 -$ year spot interest rate is $8 %$ and the $2 -$ year spot rate is $5 % .$ The forecasted $1 -$ year rate two years from now is $4.25 % .$ What is the implied forward rate on a $2 -$ year bond originating $3$ years from now?

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Question

Suppose the 5 - year spot interest rate is 8 % and the 2 - year spot rate is 5 % . The forecasted 1

Suppose the 5-year spot interest rate is 8% and the 2-year spot rate is 5%. The forecasted 1-year rate two years from now is 4.25%. What is the implied forward rate on a 2-year bond originating 3 years from now?

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Venture Capital And The Finance Of Innovation

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Suppose the $5 -$ year spot interest rate is $8 %$ and the $2 -$ year spot rate is $5 % .$ The forecasted $1 -$ year rate two years from now is $4.25 % .$ What is the implied forward rate on a $2 -$ year bond originating $3$ years from now?