obalzano3723 obalzano3723

11-03-2024
Mathematics

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Suppose that the six-month spot rate is equal to 7% and the two-year spot rate is 6%. The one-and-a-half-year forward rate starting six months from now has to:
a) Be less than 6%
b) Be greater than 7%
c) Be equal to 7%
d) Be between 6% and 7%

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