Question: .......... Problem 1 (14 points): Assume the forward rates for the next 2 years are given by: r(0.5)=6%, r(1)=7%; r(l.5)=7.5% and r(2)=8%. Keep at least

.......... Problem 1 (14 points): Assume the forward rates for the next 2 years are given by: r(0.5)=6%, r(1)=7%; r(l.5)=7.5% and r(2)=8%. Keep at least 6 decimal digits while doing calculations and r...

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