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Business, 04.10.2020 19:01 brianamelara

Consider the following spot rate curve: 6-month spot rate: 4%. 12-month spot rate: 10%. 18-month spot rate: 13%. What is the forward rate for a 6-month zero coupon bond issued one year from today? Equivalently, the question asks for f12, where 1 time period consists of 6 months. Remember, like spot rates, forward rates are expressed as bond-equivalent yields. Round your answer to 4 decimal places. For example if your answer is 3.205%, then please write down 0.0321.

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Consider the following spot rate curve: 6-month spot rate: 4%. 12-month spot rate: 10%. 18-month spo...

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