Unsure 09 K-2K+K Oh K-ST 14 of 28 LIBOR is expressed as simple interest (namely that...
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Unsure 09 K-2K+K Oh K-ST 14 of 28 LIBOR is expressed as simple interest (namely that FV-PV + PV x LIBOR x T, where LIBOR is the annualized rate, and T is the time interval in years separating now and the time at which the future value is calculated). Suppose that the 2-year LIBOR is 1.7% and that the 5-year LIBOR is 4.7%. What is the forward LIBOR between 2 and 5 years? NB Express your answer as percentage points, L.e. write "5" instead of "0.05". Keep at least two decimals in your calculation. Unsure Answer: 2 Marks 1 Mark Unsure 09 K-2K+K Oh K-ST 14 of 28 LIBOR is expressed as simple interest (namely that FV-PV + PV x LIBOR x T, where LIBOR is the annualized rate, and T is the time interval in years separating now and the time at which the future value is calculated). Suppose that the 2-year LIBOR is 1.7% and that the 5-year LIBOR is 4.7%. What is the forward LIBOR between 2 and 5 years? NB Express your answer as percentage points, L.e. write "5" instead of "0.05". Keep at least two decimals in your calculation. Unsure Answer: 2 Marks 1 Mark
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