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Consider the following term structure of interest rates

Maturity                 Interest rate

1year                              4.8%

2 tear                                5.5%

3 year                                6.0%

Compute the implied one year forward rate at the beginning of year 3?

Compute the implied one year forward rate at the beginning of year 2?

Financial Management, Finance

  • Category:- Financial Management
  • Reference No.:- M92406265

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