Question: *Please show all work and explain steps* A yield curve is given by the following equation: S 0 (t) = 0.09 + (0.002)t - (0.001)t
*Please show all work and explain steps*
A yield curve is given by the following equation:
S0(t) = 0.09 + (0.002)t - (0.001)t2
where t 0 is measured in years. Find the implied one year forward rate deferred by 4 years.
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