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Forward interest rate for the second year

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Reference no: EM133118312

Suppose that zero interest rates with continuous compounding are as follows:

Maturity Rate (%/annum)

1 3.5

2 4.0

3 4.2

4 4.6

5 5.0

What is the one year forward interest rate for the second year? Please enter your answer as a number rounded to one decimal place (e.g., enter 6.0 to indicate 6.0%).

Reference no: EM133118312

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