Assume the 30-day libor is 5 percent and the 120-day libor, Ask an Expert

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Assume the 30-day LIBOR is 5 percent and the 120-day LIBOR is also 5 percent. This implies a continuously compounded 90-day forward rate of 5.0172 percent.

Verify this result and explain what happens to the continuously compounded 90-day forward rate as the 120-day LIBOR rate increases.

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M92077991

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