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What is the forward rate
Course:- Financial Management
Reference No.:- EM131147100





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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 forward rate, f1, 2 assuming annual compounding?




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