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You observe the following annualized forward rates: time forward rate 0y1y 0.72% 1y1y 1.71% 2y1y 2.88% 3y1y 3.57% 4y1y 3.15% What is the implied 4-year
You observe the following annualized forward rates:
| time | forward rate |
| 0y1y | 0.72% |
| 1y1y | 1.71% |
| 2y1y | 2.88% |
| 3y1y | 3.57% |
| 4y1y | 3.15% |
| What is the implied 4-year spot rate? Enter answer in percents. |
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Financial Management For Public, Health, And Not-for-Profit Organizations
Authors: Steven A. Finkler, Daniel L. Smith, Thad D. Calabrese, Robert M. Purtell
6th Edition
150639681X, 978-1506396811
