Spot price of an investment asset

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Reference no: EM131459838

The spot price of an investment asset is $25 and the risk-free rate is 8%, 8.5% and 9.5% for one-year-, two-year- and three-year-maturity, respectively. The asset provides an income of $4 at the end of the first year and at the end of the second year. What is the three-year forward price?

Reference no: EM131459838

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