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Suppose the 6-year spot rate is 5.2% and the 12-year spot interest rate is 5.3%. What is the implied forward interest rate on a 6-year
Suppose the 6-year spot rate is 5.2% and the 12-year spot interest rate is 5.3%. What is the implied forward interest rate on a 6-year bond originated 6 years from now?
A. 5.4%.
B. 5.6%.
C. 5.1%.
D. 5.25%.
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