Consider the following term structure of interest rates: Maturity Interest Rate 1-year 4.6% 2-year 5.3% 3-year 6.9% Compute the implied one-year forward rate at the beginning of year 3.

Entrepreneurial Finance
6th Edition
ISBN:9781337635653
Author:Leach
Publisher:Leach
Chapter7: Types And Costs Of Financial Capital
Section: Chapter Questions
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Consider the following term structure of interest rates: Maturity Interest Rate 1-year 4.6% 2-year 5.3% 3-year 6.9% Compute the implied one-year forward rate at the beginning of year 3. 

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