Suppose the Current Seven-Year Rate Is 8 Percent and the Current

question 76

Multiple Choice

Suppose the current seven-year rate is 8 percent and the current six-year rate is 6 percent. What is the one year forward rate for six years?

• A) 16.33 percent
• B) 18.22 percent
• C) 20.82 percent
• D) 14.65 percent
• E) 15.14 percent

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