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As Quoted on a Bond Equivalent Basis, What Is the Forward

Question 46

Multiple Choice

As quoted on a bond equivalent basis, what is the forward rate (f) for if the six-month spot rate is 3.50% and the one-year spot rate is 6.55%?

A) 9.65%
B) 8.12%
C) 6.28%
D) 4.83%

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