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The 1-year forward interest rates are (r(0,1). r(1,2), (r(2,3)...): Y1 Y2 Y3 Y4 Y5 Y6 Y Y8Y9Y10 Y11 Y12 3% 4% 5% 6% 6% 6%

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The 1-year forward interest rates are (r(0,1). r(1,2), (r(2,3)...): Y1 Y2 Y3 Y4 Y5 Y6 Y Y8Y9Y10 Y11 Y12 3% 4% 5% 6% 6% 6% 7% 7% 7% 6% 5% 4% Compute the 12 n-year compounded holding rates of return from now to year n, l.e. r(0,1), (0.2)....:(0.12) Select one: a. 3%; 8.12%; 13.48%; 20.22%; 36.38%; 43.96%: 53.34%; 63.37%; 74.11%; 83.95%; 92.65%: 99.96% O b. 3%; 6.12%; 13.48%; 18.22%; 27.38%; 32.96%; 44.34%; 52.37%; 65.11%; 72.95%: 83.65%: 88.96% 1 c. 3%; 6.12%; 11.48%; 18.22%; 25.38%; 32.96%: 42.34%; 52.37%; 63.11%; 72.95%; 81.65%; 88.96% 0 0.3%; 7.12%; 12.48%; 19.22%; 26.38%; 33.96%; 43.34%; 53.37%; 64.11%; 73.95%: 82.65%: 89.96% O.O

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