Question: The three-year zero rate is 6%, the four-year zero rate is 7%, and the five-year zero rate is 8%. What is todays forward rate for
The three-year zero rate is 6%, the four-year zero rate is 7%, and the five-year zero rate is 8%. What is todays forward rate for a two-year investment made three years from now? All rates are annual and continuously compounded. Give your answer as an annual rate with continuous compounding.
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