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Discount Rates Assignment | Professional Writing

Author:
May 25th, 2020

4. Forward Rate. 1) Find current one-month forward rate (or future rate). 2) Identify whether the forward rate is at a premium or discount to spot rate, and by how many basis points.

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3) Wait for one month, find the market rate next month, and compare with the forward rate you found above. Is the forward rate a good predictor of the forward rate?

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