The Term Structure of Interest Rates: Spot, Par, and Forward Curves sample question
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Fixed Income / 9. The Term Structure of Interest Rates: Spot, Par, and Forward Curves
Choose an answer before revealing the explanation, key takeaway, and answer-choice review.
9. The Term Structure of Interest Rates: Spot, Par, and Forward Curves
The 1-year spot rate is 3.00%, and the 2-year annual spot rate is 4.00%. Assuming annual compounding, the 1-year forward rate beginning one year from today is closest to:
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