Question: Suppose that the spot interest rates with continuous compounding are: Maturity (years) Rate % 1 1.3 2 2.2 3 2.3 Calculate forward interest rates for
Suppose that the spot interest rates with continuous compounding are: Maturity (years) Rate % 1 1.3 2 2.2 3 2.3 Calculate forward interest rates for second and third years, and for a 2-year period between years 1 and 3.
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