Estimate the 6-year forward rate in four years if the


Suppose today’s 10-year interest rate is 9 percent. Today’s 4-year interest rate is 7 percent. Estimate the 6-year forward rate in four years. Estimate the 6-year forward rate in four years if the 10-year rate has a .3 percent liquidity premium.

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Financial Management: Estimate the 6-year forward rate in four years if the
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