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The following spot rates are observed today. Maturity Spot rate (%) 1 year 0.75 2 years 1.50 3 years 2.30 Calculate the short rate expected
The following spot rates are observed today.
| Maturity | Spot rate (%) |
| 1 year | 0.75 |
| 2 years | 1.50 |
| 3 years | 2.30 |
Calculate the short rate expected to prevail in one year time.
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Principles Of Finance
Authors: Scott Besley, Eugene F. Brigham
3rd Edition
0324232624, 9780324232622
