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Determine implied forward rate

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Reference no: EM133092658

Question - You have received the following information from your broker regarding spot rates.

3 months KLIBOR = 6.5 percent (90 days maturity)

6 months KLIBOR = 8.5 percent (180 days maturity)

Required -

a) Determine Implied Forward Rate for 90 days.

b) Calculate the correct price of 3 month KLIBOR futures contract.

Reference no: EM133092658

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