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Suppose the spot rates for 1 and 2 years are s 1=6.3% and s 2=6.9% with annual compounding. Recall that in this course interest rates

Suppose the spot rates for 1 and 2 years are s1=6.3% and s2=6.9% with annual compounding. Recall that in this course interest rates are always quoted on an annual basis unless otherwise specified. What is the discount rate d(0,2)?

Please submit your answer rounded to three decimal places. So, for example, if your

answer is 0:4567 then you should submit an answer of 0:457.

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