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    If the One-Year Spot Interest Rate Is 6 Percent and the Two-Year
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If the One-Year Spot Interest Rate Is 6 Percent and the Two-Year

Question 58

Question 58

Multiple Choice

If the one-year spot interest rate is 6 percent and the two-year spot interest rate is 7 percent, calculate the one-year forward interest rate one year from today.


A) 6.5 percent
B) 7 percent
C) 7.5 percent
D) 8 percent

Correct Answer:

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