Question
The bank forecasts the following one-year interest rates one, two, and three years in the future: 4.56%, 4.78%, and 4.98. The current four-year interest rate
The bank forecasts the following one-year interest rates one, two, and three years in the future: 4.56%, 4.78%, and 4.98. The current four-year interest rate is 4.71%. Estimate the current one-year interest rate. Show all calculations please.
- A. 4.5%
- B. 4.6%
- C. 4.7%
- D. none of the above.
The bank forecasts the following one-year interest rates one and two years in the future: 3.80% and 4.20%. The current three-year interest rate is 4.20%. Estimate the current one-year interest rate.
- A. 4.4%
- B. 4.6%
- C. 4.8%
- D. none of the above.
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Foundations of Finance The Logic and Practice of Financial Management
Authors: Arthur J. Keown, John D. Martin, J. William Petty
8th edition
132994879, 978-0132994873
