Solution-Compute the forward interest rates

Compute the forward interest rates

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Reference no: EM13490318

You have been provided with the following information zero coupon bonds with $1000 face value.

Maturity - semi -annual periods	semi-annual spot rates
1	4.25
2	4.15
3	3.95
4	3.70
5	3.50
6	3.25
7	3.05
8	2.90

Compute the forward interest rates.
Graph the yield curve.
Explain the factors that account for the shape of the curve.

Reference no: EM13490318

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Compute the forward interest rates

Reference no: EM13490318

Reference no: EM13490318

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