The spot rate curve is shown below: Calculation of Forward Rates What can we infer...
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The spot rate curve is shown below: Calculation of Forward Rates What can we infer about the 1-yr forward rates from 3 and 4 years from today? They must be above 5%. They must be below 5% They must be exactly 5% No such relationship can be inferred. The spot rate curve is shown below: Calculation of Forward Rates What can we infer about the 1-yr forward rates from 3 and 4 years from today? They must be above 5%. They must be below 5% They must be exactly 5% No such relationship can be inferred
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The spot rate curve is shown below: Calculation of Forward Rates What can we infer about the 1-yr forward rates from 3 and 4 years from today? They must be above 5%. They must be below 5% They must be exactly 5% No such relationship can be inferred. The spot rate curve is shown below: Calculation of Forward Rates What can we infer about the 1-yr forward rates from 3 and 4 years from today? They must be above 5%. They must be below 5% They must be exactly 5% No such relationship can be inferred 