Question: Using the data in following table, calculate the differences between one-year realized rate and one-year forward rate ( 1 f 2 ) and complete the

Using the data in following table, calculate the differences between one-year realized rate and one-year forward rate (1f2) and complete the following table.

1f2

Year

Realized Rate

Forward Rate

Difference

1991

5.81%

1992

3.26%

1993

3.40%

1994

5.43%

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