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The current 9-year spot rate is 5.30%, and the current 10-year spot rate is 5.80%. What is the forward interest rate that starts in 9
The current 9-year spot rate is 5.30%, and the current 10-year spot rate is 5.80%. What is the forward interest rate that starts in 9 years and ends in 10 years? (What risk free interest rate could a bank guarantee for a risk free product that starts in 9 years from today and ends after an additional year...e.g. repaid at the end of year 10.) A. 4.25% B. 6.50% C. 9.20% D. 10.41%
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