3 12 Suppose the spot rates of interest for investment horizons of 1 to 5 years are 4 , and for 6 to 10 years are 5 (a) Compute the forward rates of interest if for t 1,2, ,10 (b) Calculate the present value of an annuity immediate of $100 over 10 years (c) Compute the future value of the annuity ...

a Forward rate of interest for t1 ie f1 s1 4 Forward rate of interest for t2 ie f2 s2 4 as the spot ...

3.12 Suppose the spot rates of interest for investment horizons of 1 to 5 years are...

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3.12 Suppose the spot rates of interest for investment horizons of 1 to 5 years are...

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