The 6-month Treasury bill spot rate is 4%, and the 1-year Treasury bill spot rate is 5%.

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The 6-month Treasury bill spot rate is 4%, and the 1-year Treasury bill spot rate is 5%. What is the implied 6-month forward rate for 6 months from now?

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Investments

ISBN: 9780073530703

9th Edition

Authors: Zvi Bodie, Alex Kane, Alan J. Marcus

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Question Posted: Jan 04, 2013 07:56 AM

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The 6-month Treasury bill spot rate is 4%, and the 1-year Treasury bill spot rate is 5%.

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The given rates are annual rates but each period is a halfyear Th...View the full answer

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