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The following spot rates are observed on the market: Maturity Spot rate 1 year 4% 2 years 4.5% 3 years 5% 1 year forward rate
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The following spot rates are observed on the market:
Maturity
Spot rate
1 year
4%
2 years
4.5%
3 years
5%
1 year forward rate 2 years from now (F1y2y) is closest to:
6.3%
5.2%
6.0%
4.7%
The following spot rates are observed on the market:
| Maturity | Spot rate |
| 1 year | 4% |
| 2 years | 4.5% |
| 3 years | 5% |
1 year forward rate 2 years from now (F1y2y) is closest to:
| 6.3% | ||
| 5.2% | ||
| 6.0% | ||
| 4.7% |
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Your Financial Future How To Take Control Of Your Financial Future
Authors: Deloris Lutke
1st Edition
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