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    Analysis of Investments
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    Exam 18: The Analysis and Valuation of Bonds
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    Suppose the Current 6 Year Spot Rate Is 8% and the Current
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Suppose the Current 6 Year Spot Rate Is 8% and the Current

Question 8

Question 8

Multiple Choice

Suppose the current 6 year spot rate is 8% and the current 5 year spot rate is 7%.What is the one year forward rate in five years?


A) 12.62%
B) 11.58%
C) 13.14%
D) 14.65%
E) 15.14%

Correct Answer:

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