Question: Consider the following term structure: N. Rn 1. 3.53% 2. 4.25% 3. 4.50% 4. 4.65% compute the implied forward rate on a 1-year security at

Consider the following term structure: N. Rn 1. 3.53% 2. 4.25% 3. 4.50% 4. 4.65%

compute the implied forward rate on a 1-year security at the beginning of year 2 AND the implied forward rate on a 1-year security at the beginning of year 4.

A) 4.98, 5.10 B) 5.00, 5.00 C) 4.98, 3.89

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