Calculate the implied forward rates

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Reference no: EM132073337

You are a financial consultant. At various times you heard the following comments on interest rates from one of your clients. How would you respond to each comment?

(a) “When I want to determine the market’s consensus of future interest rates, I calculate the implied forward rates.”

(b) “A triple A rated bond issue should offer a lower yield than a double A rated bond issue of the same maturity.”

Reference no: EM132073337

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