Based on arbitrate arguments give two interpretations

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Reference no: EM131356064

Based on arbitrate arguments give two interpretations for each of the following three forward rates:

a. The 1-year forward rate seven years from now is 6.4%

b. The 2-year forward rate one year from now is 6.2%

c. The 8-year forward rate thee years from now ins 7.1%

Reference no: EM131356064

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