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These are the interest rates you observe in the market today: Maturity Spot Rates 1 year 3% 2 years 3.5% 3 years 4% 4 years
These are the interest rates you observe in the market today:
| Maturity | Spot Rates |
| 1 year | 3% |
| 2 years | 3.5% |
| 3 years | 4% |
| 4 years | 4.2% |
Calculate what the market expects 2-year spot rates to be, exactly 2 years in the future?
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Essentials Of Corporate Financial Management
Authors: Glen Arnold
1st Edition
1405847042, 978-1405847049
