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Level I
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Fixed Income
Fixed Income
Medium
Greystone Bank quotes the following annual spot rates: 1-year at 3.20%, 2-year at 3.80%, and 3-year at 4.25%. The implied 1-year forward rate two years from now, f(2,1), is closest to:
A
5.155%
B
4.25%
C
4.025%
D
3.80%
Select an answer to continue
Tags
#spot-rates
#forward-rates
#no-arbitrage
#term-structure
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