Question: need help Section 1 (ONLY ONE @ 7 marks) 1. Demonstrate algebraically that a 3-year interest rate is the average of three 1-year interest rate.
Section 1 (ONLY ONE @ 7 marks) 1. Demonstrate algebraically that a 3-year interest rate is the average of three 1-year interest rate. Under what condition does this result hold? Does that mean if I get a 3-year RBC bond it is equivalent to 3 1-year CIBC or TD bond? 2 Demonstrate algebraically under the momented eynectations hynthesis of the term
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