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All rates in this question are quoted with semi-annual compounding. You observe two spot rates. The 22 month spot rate is 11.60%, while the 24 month spot rate is 12.60%. What is the forward rate from 22 months to 24 months? O 23.92% O24.21% O 23.02% O 23.60%

All rates in this question are quoted with semi-annual compounding. You observe two spot rates. The 22 month spot rate is 11.60%, while the 24 month spot rate is 12.60%. What is the forward rate from 22 months to 24 months? O 23.92% O24.21% O 23.02% O 23.60%

Essentials Of Investments
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
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All rates in this question are quoted with semi-annual compounding. You observe two spot rates. The 22 month spot rate is 11.60%, while the 24 month spot rate is 12.60%. What is the forward rate from 22 months to 24 months? O 23.92% 24.21% 23.02% O 23.60%
Transcribed Image Text:All rates in this question are quoted with semi-annual compounding. You observe two spot rates. The 22 month spot rate is 11.60%, while the 24 month spot rate is 12.60%. What is the forward rate from 22 months to 24 months? O 23.92% 24.21% 23.02% O 23.60%
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