21. The k-year spot rate is given by the formula s = 0.068 +0.002k - 0.001k². What is the 3-year forward rate (la)? B) 4.5% C) 4.9% A) 4.3% D) 5.5% E) 5.9%
21. The k-year spot rate is given by the formula s = 0.068 +0.002k - 0.001k². What is the 3-year forward rate (la)? B) 4.5% C) 4.9% A) 4.3% D) 5.5% E) 5.9%
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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![21. The k-year spot rate is given by the formula s = 0.068 +0.002k - 0.001k².
What is the 3-year forward rate (in)?
A) 4.3%
B) 4.5%
C) 4.9%
D) 5.5%
E) 5,9%](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fa9d0517d-085e-40c6-8139-62d7919f2ba7%2Fadc4c7fc-9842-4d5b-b4dc-b5ff0896c86d%2Fbbj9e1_processed.jpeg&w=3840&q=75)
Transcribed Image Text:21. The k-year spot rate is given by the formula s = 0.068 +0.002k - 0.001k².
What is the 3-year forward rate (in)?
A) 4.3%
B) 4.5%
C) 4.9%
D) 5.5%
E) 5,9%
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