Question
uppose the zero rate for a 1-year investment is 0.062, the zero rate for a 2-year investment is 0.072, and the zero rate for a
uppose the zero rate for a 1-year investment is 0.062, the zero rate for a 2-year investment is 0.072, and the zero rate for a 3-year investment is 0.082 (all rates are continuously compounded). What is the forward rate for the 3rd year?
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Personal Finance
Authors: Jack R Kapoor, Glencoe McGraw Hill, Les R Dlabay, Robert J Hughes
1st Edition
0078698006, 9780078698002
