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suppose the nominal spot rates for the next four years from now (t=0) are s1=6.40, s2=7.00, s3=7.50, s4=7.80 in % a) find the spot rates
suppose the nominal spot rates for the next four years from now (t=0) are s1=6.40, s2=7.00, s3=7.50, s4=7.80 in %
a) find the spot rates s1, s2, s3, and s4 for annual compounding
b) find the forward rates f1,4, f2,3, and f2,4, for quarterly compounding
c) find the forward rates f2,3, f2,4, and f3,4, for continuous compounding
d) find by forecasting next year's spot rates s1', s2', and s3' for monthly compounding
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