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Suppose you observe the following zero-coupon bond prices per $1 of maturity payment: 0.94402 (1-year), 0.88348 (2-year), 0.81767 (3-year). Compute r0 (1,3), the implied forward
Suppose you observe the following zero-coupon bond prices per $1 of maturity payment: 0.94402 (1-year), 0.88348 (2-year), 0.81767 (3-year). Compute r0 (1,3), the implied forward rate for a loan made at the end of year 1 and maturity at the end of year 3. Answer 7.45%
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