Question: . Problem 9. The current 1-year rate (fo.1) is 4%, the 1-year forward rate for lending from time =1 to time 2 ( f1.1) is

. Problem 9. The current 1-year rate (fo.1) is 4%, the 1-year forward rate for lending from time =1 to time 2 ( f1.1) is 5%, and 1-year forward rate for lending from time=2 to time=3 ( f2.1) is 6%. ...

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