Question
The spot rate for year 1 is 7% and the forward rate for year one to two is 10%. The two-year discount factor is _____
The spot rate for year 1 is 7% and the forward rate for year one to two
is 10%. The two-year discount factor is _____ .
A. Show the Formula (0.2 point) B. Show the Steps and calculation (0.3 point) C. Present the Answers (0.1 point)
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Understanding The Finance Of Welfare
Authors: Howard Glennerster
2nd Edition
1847421091, 978-1847421098
