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Problem in Forecasting Interest Rates based on unbiasedexpectations theory:These are the rates today (June 15, 2018) for loans of equalrisk.R1 = 2%;R2 = 3%R3 = 4%R4 = 5%A. Given this information, calculate one-year forward rate for aone-year loan beginning 6/15/19 and ending on 6/15/20B. Calculate the two-year forward rate for a one-year loanbeginning 6/15/20 and ending on 6/15/21C. Calculate the three-year forward rate for a one-year loanbeginning 6/15/21 and ending on 6/15/22D. Calculate the two-year forward rate for a two-year loanbeginning 6/15/20 and ending on 6/15/22
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