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Suppose the Current Six-Year Rate Is 9 Percent and the Current

Question 103

Multiple Choice

Suppose the current six-year rate is 9 percent and the current five-year rate is 7 percent. What is the one year forward rate for five years?

A) 19.57 percent
B) 18.62 percent
C) 15.80 percent
D) 14.65 percent
E) 12.67 percent

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