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The Following Is Information on Current Spot and Forward Term

Question 109

Multiple Choice

The following is information on current spot and forward term structures (assume the corporate debt pays interest annually) : The following is information on current spot and forward term structures (assume the corporate debt pays interest annually) : Calculate the value of y (the implied forward rate on one-year maturity BBB corporate debt to be delivered in one year) . A) 6.53 percent. B) 10.83 percent. C) 5.75 percent. D) 6.925 percent. E) 1.017 percent. Calculate the value of y (the implied forward rate on one-year maturity BBB corporate debt to be delivered in one year) .


A) 6.53 percent.
B) 10.83 percent.
C) 5.75 percent.
D) 6.925 percent.
E) 1.017 percent.

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