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Suppose the spot rates are given by the following table: Time to Expiration Spot Rate (Years) 0.5 3.75 1 4 1.5 3.5 2 3.25 2.5

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Suppose the spot rates are given by the following table: Time to Expiration Spot Rate (Years) 0.5 3.75 1 4 1.5 3.5 2 3.25 2.5 3.75 3. 4.25 Derive a formula for the in 1.5-year for 6 months forward rate: 1.59.5 . Calculate the fair value. Suppose the spot rates are given by the following table: Time to Expiration Spot Rate (Years) 0.5 3.75 1 4 1.5 3.5 2 3.25 2.5 3.75 3. 4.25 Derive a formula for the in 1.5-year for 6 months forward rate: 1.59.5 . Calculate the fair value

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