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FIN325_Implied Forward Rate problemsKEY
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R2=4.5% and R4=5.6% What is the implied 2-year forward rate for year 3?
3f2=((1.056^4)/((1.045)^2))^(1/2) – 1 = 6.71%
R1=2.2% and R2=2.4% What is the implied 1-year forward rate for year 2?
2f1=(1.024^2)/(1.022) – 1 = 2.6%
R2=2.4% and R3=2.8% What is the implied 1-year forward rate for year 3?
3f1=(1.028^3)/((1.024)^2) – 1 = 3.60%
R2=2.4% and R4=3.2% What is the implied 2-year forward rate for year 3?
3f2=((1.032^4)/((1.024)^2))^(1/2) – 1 = 4.01%
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[Solved] FIN325_Implied Forward Rate problemsKEY
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- Submitted On 16 May, 2017 05:20:05
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- Homeworkmerit
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R2=4.5% and R4=5.6% What is the implied 2-year forward rate for year 3?
3f2=((1.056^4)/((1.045)^2))^(1/2) – 1 = 6.7...
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FIN325_Implied Forward Rate problemsKEY
R2=4.5% and R4=5.6% What is the implied 2-year forward rate for year 3?
3f2=((1.056^4)/((1.045)^2))^(1/2) – 1 = 6.71%
R1=2.2% and R2=2.4% What is the implied 1-year forward rate for year 2?
2f1=(1.024^2)/(1.022) �...
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FIN325_Implied Forward Rate problemsKEY
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