Suppose the spot rates for 1 and 2 years are s163 and s269, Ask an Expert

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Suppose the spot rates for 1 and 2 years are s1=6.3% and s2=6.9% with annual compounding. Recall that in this course interest rates are always quoted on an annual basis unless otherwise specified. What is the discount rate d(0,2)?

Please submit your answer rounded to three decimal places.

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