Question
The period in most forward rate calculations is taken to be one month (30 days). Use the drop down lists to select the correct interest
The period in most forward rate calculations is taken to be one month (30 days). Use the drop down lists to select the correct interest rate definition symbol for each of the descriptions below:
a)0r2 : the rate for a 60 day investment in 30 days time / the implicit two period forward rate / the two period spot rate(choose one)
b)1r2 next periods 30 day spot rate / the implicit two period forward rate / the two period spot rate(choose one)
c)1r3 the rate for a 60 day investment in 30 days time / next periods 3 month spot rate / the two period spot rate(choose one)
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