Multiple Choice
According to the expectations theory, what is the one-year forward rate three years from now if three and four-year spot rates are 5.50% and 5.80%, respectively?
A) The rate cannot be calculated from the information above.
B) 6.2%
C) 6.7%
D) 5.6%
E) 5.8%
Correct Answer:
Verified
Correct Answer:
Verified
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