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Given the following spot rates, find the forward rates F0(n,n+1) for n=1,2,3,4. Note the ...

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Finance

Given the following spot rates, find the forward rates F0(n,n+1) for n=1,2,3,4. Note the

notation F0(n,n+m) denotes a forward rate over m periods contracted now at time t=0 for effect n

periods from now at t=n. Pls provide the calculation process in details, thanks.

image

(one-year or p.a.) Spot Rates Maturity in years Spot Rate 1.00000% 1 1.20120% No 1.25148% 4 1.40445% 5 1.81944%

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