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The 1-year, 2-year, and 3-year zero rates are 7%, 6%, and 5%, respectively. To the nearest percent, what is the forward rate from year 1
The 1-year, 2-year, and 3-year zero rates are 7%, 6%, and 5%, respectively. To the nearest percent, what is the forward rate from year 1 to year 3?
- 4%
- 6%
- 8%
- Something else
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Financial Mathematics Derivatives And Structured Products
Authors: Chan
1st Edition
9811336954, 978-9811336959
