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You have a one-year horizon and purchase a cash frow of 250,000 in 6 years. Calculate your ROR for the following three expectations: Static Yield
You have a one-year horizon and purchase a cash frow of 250,000 in 6 years. Calculate your ROR for the following three expectations:
- Static
- Yield Curve Ride
- Using forwards to get expected future rate and, thereby, the proceeds.
You can use either the exact or the approximate formulas for forwards.
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