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Suppose the Current 7 Year Rate Is 8% and the Current

Question 105

Multiple Choice

Suppose the current 7 year rate is 8% and the current 6 year rate is 6%.What is the one year forward rate for six years?

A) 16.33%
B) 18.22%
C) 20.82%
D) 14.65%
E) 15.14%

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