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Business, 18.07.2020 16:01 jordynnmarelich1194

Problem in Forecasting Interest Rates based on unbiased expectations theory: These are the rates today (July 2, 2020) for loans of equal risk. R1 = 3%;
R2 = 4%
R3 = 4.5%
R4 = 5%
A. Given this information, calculate one-year forward rate for a one-year loan beginning 6/15/19 and ending on 6/15/20B. Calculate the two-year forward rate for a one-year loan beginning 6/15/20 and ending on 6/15/21C. Calculate the three-year forward rate for a one-year loan beginning 6/15/21 and ending on 6/15/22D. Calculate the two-year forward rate for a two-year loan beginning 6/15/20 and ending on 6/15/22

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