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Consider the following spot interest rates for maturities of one, two, three, and four years....

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Finance

Consider the following spot interest rates for maturities of one, two, three, and four years. r1 = 3.9% r2 = 4.2% r3 = 5.7% r4 = 6.0% What is the percentage forward rate f_(2,1), where f_(k,1) refers to a forward rate beginning in k years and extending for 1 year?

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