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P6-A6 Assume that the five-year spot rate is 10 percent. a....

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Accounting

P6-A6
Assume that the five-year spot rate is 10 percent.
a. If the forward rate over the sixth year is currently at 7.5 percent, what is the six-year spot rate? (Do not round intermediate
calculations. Round the final answer to 2 decimal places.)
Six-year spot rate
%
b. If the forward rate over the fifth year is currently at 9 percent, what is the four-year spot rate? (Do not round intermediate
calculations. Round the final answer to 2 decimal places.)
Four-year spot rate
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