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30 August, 21:27

Suppose the 8-year spot rate (r8) is 2.0% and the 10-year spot rate (r10) is 3.0%. Which rate is closest to the forward rate that begins in 8 years and last for 2 years (8f2)

1. 1.0%

2. 2.5%

3. 4.0%

4. 7.0%

5. The forward cannot be determined

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Answers (1)
  1. 30 August, 23:22
    0
    The answer is 2 since it's between botch and they're even
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