Suppose oil forward prices for 1- 2- and 3-year contracts, Ask an Expert

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Suppose oil forward prices for 1-, 2-, and 3-year contracts are $20, $21, and $22. The 1-year effective annual interest rate is 6%, the 2-year interest rate is 6.5%, and the 3-year interest rate is 7%. What is the price of a 2-year swap beginning in one year?

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M91568315

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