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Which Formula Is Correct for a Simple Forward Interest Rate δ\delta

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Which formula is correct for a simple forward interest rate over [T,T + δ\delta ]?


Definitions:

Leveraged Buyout

The acquisition of another company using a significant amount of borrowed money (bonds or loans) to meet the cost of acquisition.

Sale

The exchange of goods, services, or assets for money between a buyer and a seller.

Proxy Fight

A battle for control over a company, where opposing parties attempt to win the votes of shareholders to effect change in the company's board of directors.

Incompatible Operations

Processes or activities that cannot be efficiently executed together due to differing requirements or objectives.

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