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The annual spot rates for three different bonds are specified below: Year Annual Spot Rate (%) 0.5 1 1.5 4 4 7 Suppose interest rates
The annual spot rates for three different bonds are specified below: Year Annual Spot Rate (%) 0.5 1 1.5 4 4 7 Suppose interest rates are semi-annually compounded. What is the forward rate from year 1 to year 1.5? 12.62% 14.377% O 13.508% 13.133% O None
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