Determine the interest swap rate

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Reference no: EM131887768

Given a forward rate for year one of 5%, a forward rate for year 2 of 5.2%, and a year 3 forward rate of 5.6%, determine the interest swap rate (ie. At-Par yield rate for an equivalent bond). You will need to calculate the spot rates from the forward rates. Express your answer as a decimal to 4 decimal places.

Reference no: EM131887768

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