Question: PLEASE SHOW FULL EXXPLANATIONS The 1-year LIBOR rate is 6.4% with quarterly compounding. The 3-month forward rate, calculated from a Eurodollar futures contract that matures

PLEASE SHOW FULL EXXPLANATIONS

The 1-year LIBOR rate is 6.4% with quarterly compounding.

The 3-month forward rate, calculated from a Eurodollar futures contract that matures in 15 months, is 8.0% with continuous compounding.

To two decimal places, an estimate of the 15-month LIBOR rate, with quarterly compounding, is________

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